Customs savvy provides competitive edge

One thing everyone will agree on is that having access to the right information at the right time is priceless. There are many sources out there where one can access the required information. All one has to know is how and where to find it. If a company has a nominated and dedicated staff member searching for the necessary information, the cost will be fairly minimal. However, if one overlooks important information it can cost the company a fortune in not applying the necessary changes in its business activities. Take an amendment to the Customs & Excise Act 91 of 1964 (“the Customs Act”) as an example. If a company does not align itself with the amendment as soon as it becomes effective, that company will be in contravention of the Customs Act, and depending on the type of contravention, may stand to incur penalties running into the millions. Ignorance of the law is no excuse. Non-compliance can have a devastating effect on a company’s financial standing. If word gets out, customers and suppliers will feel jittery and may even decide to ‘jump ship’ and begin supporting the competitor(s). While the cost of receiving regular updates to the Customs Act, the International Trade Administration Act 71 of 2002 (“ITA Act”), and other relevant Acts may seem fairly high in the short term, if one thinks long term, the monthly subscription fees in receiving such updates will be money well spent. Information can also be used as a competitive advantage. Take for example two manufacturers, Manufacturer A and Manufacturer B who both service the same industry. Manufacturer A is the company ‘in the know’ receiving regular updates, and Manufacturer B feels that spending money on acquiring information relating to updates is an unnecessary expense. Such a company prefers going to the information as opposed to the information coming to them. When the Customs Act is amended, Manufacturer A will be notified immediately and will be in a position to implement the amendment. Manufacturer B won’t be aware of the amendment and as such will continue to operate as usual. The amendment could be the introduction of a new industrial rebate facility, enabling manufacturers to reduce manufacturing costs due to a saving in duties. Manufacturer A will be in a position to reduce the selling price of its goods, whereas Manufacturer B will not be until it is aware of the rebate provision. In the interim, Manufacturer A could increase its market share by supplying to Manufacturer B’s clients at a better price. Furthermore, Manufacturer B may never regain these clients. This example highlights the importance of being one step ahead of the opposition in this age of information. This can be accomplished by subscribing to a legitimate provider of information in your particular industry.