JERICHO, NY – May 28, 2009 –Savvy U.S. automotive aftermarket suppliers are taking advantage of the strong buying power of the U.S. dollar to purchase components and other materials in Canada for transport back to the U.S. A new white paper by cross border logistics expert Purolator USA details steps to ensure that these savings are not eaten up by faulty logistics plans and unexpected fees and compliance issues.
A key takeaway of the white paper, “Imports Supply Chain Logistics, A Comprehensive Logistics Plan for U.S. Businesses Looking for Value in the Canadian Marketplace,” is the need for U.S. businesses to ensure that their shipments are being handled by an experienced logistics provider who not only understands the U.S./Canada regulatory process, but also has access to a U.S. distribution network.
“Too many U.S. businesses have learned the hard way that, while the Canadian market does present many opportunities, transporting goods from Canada into the U.S. involves a significant regulatory process,” said Purolator USA President John Costanzo. “And unless a business, or its designated logistics provider, has a good understanding of that regulatory process, chances are good that a U.S.-bound shipment will be held up at the border. This of course will result in fees and penalties racking up, along with costly delays.”
Purolator USA’s new paper also discusses several U.S. trade programs that are intended to facilitate the flow of goods across the border by minimizing delays and tariffs. One program, the Duty Drawback program reimburses U.S. businesses for up to 99 percent of the duty paid on imports that are subsequently used in the manufacture of a product that is then exported.
“The Duty Drawback program can be especially beneficial to U.S. aftermarket suppliers,” Costanzo said. “Unfortunately though, many businesses – and their logistics providers – are unaware of this program. In fact, as much as $2 billion in eligible drawback refunds go unclaimed each year. And there are several other trade enhancement programs that can facilitate cross border trade, but they are only available to qualified, certified logistics providers.”
Purolator USA offers expertise in cross border logistics, as well as comprehensive solutions for all transportation needs. Aftermarket suppliers are increasingly turning to Purolator to transport shipments into Canada, and to then return with their Canadian purchases. “Our aftermarket customers are telling us that they have a high level of comfort with Purolator’s cross border expertise,” Costanzo said, “and that ensuring the timely and cost efficient delivery of their shipments – north and south bound -- cannot be left to chance.”
Aftermarket suppliers are encouraged to download a copy of “Imports Supply Chain Logistics, A Comprehensive Logistics Plan for U.S. Businesses Looking for Value in the Canadian Marketplace.” To contact a Purolator USA sales processional, please visit http://www.purolatorusa.com.
About Purolator USA
Purolator USA, Inc. is a subsidiary of Purolator Courier Ltd, Canada’s largest overnight courier company. Purolator USA specializes in the air and surface forwarding of small packages and freight shipments, customs brokerage and delivery to, from and within the North American market.
Purolator USA has doubled the size of its U.S. office network during the past 18 months, with branches now operating in Los Angeles, Seattle, Chicago, Detroit, Buffalo, Dallas/Ft. Worth, Philadelphia, Raleigh/Durham, New York and Newburgh, NY.