Classifying products for customs can be complicated and time-consuming. But Deloitte, with the help of SAP technology, provided apparel and footwear company VF Corporation with a solution to simplify and accelerate classification. Credit: iStock Suppose you have an international apparel company that manufactures and sells shirts. But let’s focus on just one shirt to start. Following common industry practice, you have the shirt manufactured in one country. The raw materials for manufacturing come from another country. And when the shirt is completed, it’s distributed to a third country to be sold in a store. When raw materials, components, or finished products move between countries or regions, they’re subject to customs in each country/region. Items (raw materials to finished product) must be classified according to the World Customs Organization (WCO), each receiving a different classification number to clear the gate. Classification gets even more complicated A shirt usually comes in multiple sizes. So, a classification number needs to be maintained (in the system) for each size. Add to the other classification numbers for location, materials, components, and the finished shirt. The result? You have a vast amount of parts and numbers to deal with, eating up time and energy. And […]
Deloitte and SAP team to create the perfect ware for trade classification
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