5 Ways to Audit Import Costs Now

Tariffs Are Rising—Now Is the Time to Audit Import Costs

Newly imposed tariffs are significantly increasing costs for importers, making it more important than ever to audit import costs and review your supply chain expenses. When was the last time you audited your freight, customs, and other logistics-related invoices? If you’re not actively reviewing these costs, you could be losing significant money.

We specialize in identifying hidden savings and optimizing your import operations. Through our partnership with Supply Chain Shark, we provide comprehensive cost audits to help businesses navigate these rising costs. Here are five critical areas where you can audit import costs now:

1. Check Your Incoterms

Your Incoterms dictate who is responsible for various costs in the shipping process. Misalignment between your agreed Incoterms and your actual charges can result in unnecessary expenses. One business we worked with saved $300,000 annually after an Incoterm audit revealed that their supplier should have been covering certain fees.

2. Optimize Cargo Insurance

If you’re paying for cargo insurance on a shipment-by-shipment basis, you may be overpaying. Switching to an annual cargo insurance plan can significantly reduce costs. A client who made this transition now saves hundreds of dollars per shipment, adding up to substantial yearly savings.

3. Adjust Your Duties Payment Method

Many businesses unknowingly pay hefty disbursement fees when their freight forwarder advances duties on their behalf. The recent increase in tariffs will also raise the service fees you pay to your freight forwarder or customs broker for duty payments. By paying duties directly to customs, you can eliminate 2-5% in service fees—a simple switch that can lead to thousands in annual savings. This is a crucial step when looking to audit import costs effectively.

4. Review Your HTS Classifications

Incorrect Harmonized Tariff Schedule (HTS) classifications can mean overpaying on import duties. With the recent tariff increases, it’s crucial to ensure you are using the correct HTS codes and paying the correct duty amount, see: The Importance of Using Correct HTSUS Codes. One company we assisted cut their annual expenses by 30% simply by ensuring their HTS codes were accurate. A classification review could lead to similar savings for your business. If you’re uncertain about your HTS classifications, book an HTS Review as soon as possible to properly audit import costs.

5. Identify Additional Cost-Saving Opportunities

Beyond these key areas, other effective cost-saving strategies include:

• Customs Bonds: Ensuring the right bond type for your import volume
• Transportation Mode: Comparing ocean, air, and rail options for better cost efficiency
• First Sale Rule: Lowering declared customs value by leveraging manufacturer invoices
• 3PL & Broker Audits: Checking for overcharges on service provider fees
• Negotiating Unit Prices & Incoterms Scenarios: Finding the most cost-effective supplier agreements

Through Supply Chain Shark and Empress Brokers, we provide expert guidance and cost audits to help you navigate rising tariffs and supply chain expenses. If you haven’t conducted a full audit of your import costs recently, now is the time.

Find out how much you could be saving today: Supply Chain Shark Cost Audit.