Should Canadian Businesses Outsource Customs Brokerage Services?

Customs brokerage services play a pivotal role in facilitating international trade. They ensure that goods cross borders efficiently and in compliance with complex regulations. In recent years, there has been an ongoing debate regarding the pros and cons of outsourcing customs brokerage services. Some industry players balk at the idea, claiming that it’s a way for service providers to cut costs while compromising quality, therefore putting your business at risk. That couldn’t be further from the truth; in fact, outsourcing these services can offer numerous benefits to businesses. Here are some of the key advantages to outsourcing:

Expertise and Compliance

Detractors will object that offshoring these services can lead to a lack of expertise and ultimately, compliance issues. However, a reputable outsourcing partner will have a wealth of knowledge in customs regulations and a thorough understanding of local laws and procedures. With the right partner, your business gains the support of a specialized team of experts capable of navigating the complexities of international trade laws to ensure your shipments remain compliant with changing regulations.

Cost Savings

Contrary to the belief that offshoring increases costs, outsourcing customs brokerage services is typically a more cost-effective option. Maintaining an in-house customs team can be expensive: you’ll need to make hefty investments in salaries, training, and technology – not to mention around-the-clock staff to handle overnight shipments. On the other hand, outsourcing allows you to access professional services on an as-needed basis, reducing fixed overheads. And outsourcing partners can often negotiate lower customs duties and taxes, resulting in substantial savings.

Focus on Core Competencies

By outsourcing customs brokerage responsibilities, your business can concentrate on its core activities, whether that’s manufacturing, sales, or something else. This stands in contrast to the myth that outsourcing leads to a loss of control. Actually, outsourcing allows companies like yours to focus resources on their primary functions, leaving customs brokerage to experts specifically trained to handle it efficiently.

Scalability and Flexibility

Customs brokerage requirements can fluctuate greatly due to seasonality, market changes, regulatory changes, or unforeseen events (for example, a massive blockage in the Suez Canal or a global pandemic). In-house teams may struggle to adapt to these fluctuations, leading to delays or inefficiencies. Outsourcing provides flexibility in managing customs processes. It’s also helpful that you can scale up or down according to your business needs – and without the headache of hiring or (worse) laying off employees.

Risk Mitigation

Global trade involves inherent risks, including regulatory changes, political instability, and currency fluctuations. Outsourcing customs brokerage services to well-trained experts who understand these risks can help you mitigate potential disruptions. Furthermore, by sharing the responsibility, you reduce the burden of managing these risks on your own.

Technology and Innovation

Reputable customs brokerage service providers invest in the latest technology and innovation to continually improve their processes. This includes electronic document submission, automated compliance checks, and real-time tracking. Partnering with a customs broker who leverages these technologies can help your business stay ahead –  without additional investments.

International Reach

Outsourcing can also offer access to a network of international partners and expertise in multiple markets. This can be helpful if your business aims to expand globally and needs support in new geographies where your team may not understand the regulations or even the language.

While some domestic players may project concerns about offshoring customs brokerage services, it’s important to recognize that for many companies, outsourcing can provide a host of benefits. By choosing the right partner, your business may be able to streamline its international trade operations, ensuring compliance, reducing costs, and enabling a greater focus on core competencies. 

It will ultimately come down to your business’s specific needs and goals, but should you choose to outsource customs brokerage services, we hope you’ll contact us to learn more about how Portway International can help.