Business Implementation with your LSP (Logistics Service Provider)

Most Traders use one LSP (Logistics Service Provider) for both the Freight Forwarding and Customs Clearing components of their business. Some use separate LSP, one for Freight Forwarding and another for the Customs Clearing. The reasons for the latter may be for cost benefits, to meet buyer or supplier requirements or because of the Incoterms (International Commercial Terms) agreed. There may be more reasons for this but, whichever the case, there will need to be a full implementation of both your Freight Forwarding and Customs Clearing requirements with your LSP.

Knowledge of Customs Affairs

I was asked at a conference in Durban in recently whether Customs clients will in the future have to write a Customs exam as proof of knowledge. While this is true for clients wanting to attain the SARS Customs PTA (Preferred Trader Accreditation), it is not true for all Customs clients. Well, not at this stage anyway.

Elements of Self-Compliance

Compliance is not about one or two things which if done correctly, assure you a pass. It is also not something that you do in isolation from your LSP (Logistics Service Provider). It is also not something that is simply passed onto a third party LSP believing that they are the sole providers of the respective legislative compliances.

Compliance Economics: 80/20 or 100%?

Most business people today know about the Pareto principle, commonly referred to as the 80/20 Rule. It was named after the Italian economist Vilfredo Pareto. Pareto discovered that 80% of the land was owned by 20% of the population. He also observed that 20% of the pea pods in his garden contained 80% of the peas.