Outsourcing Your Customs – Good Idea Or Big Mistake?

Managing customs procedures can be a complex and time-consuming process that can distract companies from their core business activities. 

That’s why the question arises whether it’s better to outsource these operations through subcontracting or implement an internal department to manage them in-house. 

There are pros and cons to both choices, and companies must weigh them before making a decision.

Insourcing Customs: The Challenges & Benefits

Taking customs procedures in-house is potentially more profitable, as it avoids the involvement of third parties. However, it can come with its own set of challenges. 

Companies need to consider the following:

• Finding talent: Your company will have to find talent internally or hire someone who will require training on all the specifics of your company.
• Investing in resources: You will need to invest in additional resources or facilities, thus increasing expenses (training, software, archiving).
• Dealing with HR issues: You will need to deal with all HR issues internally (vacations/sick leave).
• Staying compliant: You will be responsible for remaining up to date with new requirements of the European customs regulations, and ensuring your procedures are fully compliant.

However insourcing customs procedures can be more profitable for some companies, as it avoids the involvement of third parties, and once your internal team is built up, it allows your company to more quickly respond to changes in customer requests or industry conditions.

Outsourcing Customs: The Benefits & Disadvantages

Outsourcing your customs procedures offers many advantages that should be weighed against the challenges of insourcing. 

Outsourcing customs procedures offers five key advantages:

• Focus on core business: By outsourcing customs procedures, companies can focus on their core business activities.
• Consistent results and supply chain quality: Customs service providers have years of specialist knowledge, networks, and offer unavailable to private companies. They know the best practices in customs regulations and can avoid as much hassle as possible while thinking about future stability and flexibility of your supply chain when issues arise.
• Control costs: The customs partner will scale their service appropriately to the customer’s needs by providing rates that support their activities and goals.
• Instant competence: Engaging the services of a specialized customs partner instantly provides companies with skills that are difficult to develop or provide otherwise. The customs partner can bring valuable know-how and be a source of operational optimization for the supply chain.
• Increase operational flexibility: To adapt to the rules of a competitive market quickly and appropriately, the customs partner can assist companies to make these changes at the right time.

It should also be kept in mind that the relationship must be grown and maintained, which should be a win-win, but can also be a point where issues can develop.

These need to be weighed against your situation and goals.

Why Choose Ziegler for Customs Solutions?

If companies want to outsource customs procedures, they need a reliable and experienced partner that can ensure custom solutions that match their needs. 

Ziegler Group is an international transport and logistics company that offers specialized customs solutions. Our customs experts can work across many countries at once and are organized in interconnected customs support teams to offer the best service quality. 

Ziegler’s customs experts are constantly monitoring the evolution of customs regulations and best practices, so we can provide companies with the best regulatory solutions at any given point in time as the world continues to change.

Conclusion

While insourcing customs procedures might seem more profitable at an initial glance, it comes with its own set of challenges. Outsourcing customs procedures, on the other hand, offers many benefits such as focusing on core business activities, consistent results, control costs, instant competence, and increased operational flexibility. If companies choose to outsource customs procedures, they need a reliable partner that can provide custom solutions that match their needs. Ziegler Group’s experienced and passionate international team and global network can help your company navigate complex customs regulations and provide the best possible solutions.