Customs duties are an inevitable cost of doing international business. But while many still treat customs management as merely a cost centre, the most successful international brands view it as a chess game where the right moves can deliver substantial competitive advantages. The difference lies in understanding that customs is about strategic decision making that helps optimise your international operations.
Press play on this episode of Beyond Threads to hear from our Customs Director, Katja Idsinga-Schellaars, as she explains how customs management can be a strategic growth lever for your brand.
Calculating customs duties effectively
On the surface, customs duty calculations follow a deceptively simple formula: tariff rate multiplied by customs value. Yet within this basic equation lie multiple opportunities for strategic optimisation that are easy to overlook without specialist knowledge.
“The tariff component depends on accurate HS code classification and understanding how country of origin affects applicable rates,” explains Katja. But it’s the ‘customs value’ element where sophisticated brands often find the most significant opportunities for legitimate cost reduction.
“Free trade agreements between countries often provide preferential duty rates or complete duty elimination for qualifying products, but these benefits only apply when goods meet specific origin requirements and proper documentation is maintained,” continues Katja. “That’s why it’s so important to be proactive in your customs management approach.”
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Making strategic warehousing decisions
When goods are stored in bonded warehouses, they remain under customs supervision, with duties only becoming due upon actual importation. Therefore, the choice between immediate importation and bonded warehousing is a strategic decision that affects cash flow, operational flexibility and duty exposure. Sometimes, making use of such facilities can save brands from hefty customs duty bills.
“This arrangement provides significant cash flow advantages, particularly for fashion brands with seasonal inventory patterns or uncertain demand forecasting,” says Katja. “For brands whose products face zero duty rates, bonded warehousing provides no financial advantage. However, when your goods do attract duty and are destined for other countries, bonded storage can prevent double duty payments.”
Getting specialist support for customs management
With so many factors to consider, optimising your customs management approach can seem like a monumental task. But fashion brands don’t need to face it alone. Working with a specialist logistics partner can transform complex regulatory requirements from operational burden into strategic advantage.
Effective customs management requires sophisticated data systems and global infrastructure that most fashion brands don’t have in-house. Specialist logistics partners already have the capabilities and expertise in place, delivering streamlined processes that can accelerate international expansion.
Ready to turn customs into your competitive advantage?
The brands that win consistently in international markets don’t just manage customs – they leverage it. Strategic customs management delivers more competitive pricing, accelerated market entry and operational flexibility that creates lasting advantages over competitors who view compliance as an operational burden. When margins are thin and speed determines success, customs expertise is essential for international growth.
Press play on this episode of Beyond Threads to get the full story from Katja and learn how transforming your approach to customs management can turn streamlined compliance into a key strategic asset. Get in contact for a free consultation with a Bleckmann expert.
