Customs trends:
New survey findings
May 24, 2012
Roy Coburn
U.S. President
Livingston International Inc.
Chicago
Why do the survey?
 Acquired Vastera from J.P. Morgan Chase N.A.
 Result: Greater U.S. and overseas presence
 Learn how companies feel about working
in international markets
About the survey
 National survey
 Conducted April 3-11
 Ipsos Public Affairs
 500 import-export pros
 Small and medium-sized businesses
Findings
Businesses want to take advantage
of opportunities overseas.
They are confused about how to do
this.
They are cutting corners, gambling
with their businesses, ignoring
government regulations.
Concerned about Customs…
How concerned are you about Customs delays impacting your ability to
properly manage your business?
50%
82%
40%
34%
33%
30%
20%
15%
15%
10%
3%
0%
Extremely
concerned
Very concerned
Actual numbers may be different due to rounding
Somewhat
concerned
Not too
concerned
Not at all
concerned
…but risking their business
As there are so many changes to government regulation, I tend to ignore them and
hope for the best when transporting my company’s goods across international borders
40%
34%
36%
30%
30%
25%
20%
10%
0%
6%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat disagree
Strongly disagree
Major disconnect:
Businesses are knowingly risking delays and costly fines
Cora Di Pietro
Vice President,
Consulting
Livingston International Inc.
Toronto
Missing out
My company doesn’t focus on new markets due to the level of complexity with
getting products there
50%
36%
43%
40%
30%
30%
21%
20%
10%
0%
6%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat disagree
Strongly disagree
Difficult to entertain new markets
Increased complexity related to international trade makes it difficult for my
company to entertain new markets
70%
69%
60%
54%
50%
40%
27%
30%
20%
15%
10%
0%
5%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat disagree
Strongly disagree
Delays: significant financial impact
Financial impact of border delay
10%
21%
17%
12%
19%
21%
Actual numbers may be different due to rounding
None
<5%
5%-9%
10%-14%
15%-19%
20%+
Per cent value of shipment
Concerns: customer experience, penalties
How concerned are you about a bad customer experience due to unforeseen
additional cost of clearing international borders
40%
72%
33%
30%
26%
22%
20%
12%
10%
0%
7%
Extremely
concerned
Very concerned
Actual numbers may be different due to rounding
Somewhat
concerned
Not too
concerned
Not at all
concerned
Concerns: customer experience, penalties
How concerned are you about penalty fees related to incorrect
classification of products
40%
68%
33%
30%
26%
25%
20%
10%
0%
9%
Extremely
concerned
7%
Very concerned
Actual numbers may be different due to rounding
Somewhat
concerned
Not too
concerned
Not at all
concerned
Good news: Optimistic about growth
In the next 12-24 months, I expect my company to grow
60%
89%
50%
47%
42%
40%
30%
20%
9%
10%
2%
0%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat
disagree
Strongly disagree
Good news: Optimistic about growth
There will be growth in my industry in the next 12-24 months
70%
84%
60%
51%
50%
40%
33%
30%
20%
13%
10%
3%
0%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat
disagree
Strongly disagree
Markets where company is currently active
100%
94%
90%
80%
70%
62%
60%
51%
50%
40%
54%
35%
30%
20%
10%
0%
9%
Other
South
American
Actual numbers may be different due to rounding
Asian
European
Other NA
US
Some uncomfortable pursuing new markets
How comfortable are you targeting new international markets?
50%
40%
14%
31%
30%
20%
38%
48%
17%
12%
10%
2%
0%
Extremely
comfortable
Very comfortable
Actual numbers may be different due to rounding
Somewhat
comfortable
Not too
comfortable
Not at all
comfortable
Many acknowledge limited expertise
How concerned are you about lack of knowledge within your
organization related to clearing goods for international trade?
40%
62%
33%
31%
30%
22%
20%
10%
7%
7%
0%
Extremely
concerned
Very concerned
Actual numbers may be different due to rounding
Somewhat
concerned
Not too
concerned
Not at all
concerned
Many acknowledge limited expertise
I have no idea what the related cost of clearing international borders is
50%
43%
40%
30%
28%
29%
24%
20%
10%
4%
0%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat disagree
Strongly disagree
Many acknowledge limited expertise
My company has an up-to-date international trade compliance manual
50%
46%
40%
38%
30%
30%
20%
16%
16%
10%
0%
Strongly agree
Somewhat agree
Actual numbers may be different due to rounding
Somewhat disagree
Strongly disagree
Conclusions
Majority find trade compliance
confusing, intimidating
Surprising number ignore
government regulations, risk their
business
Many miss opportunities because of
lack of expertise
Risks/Liabilities of non-compliance
 Classification
 Valuation
 Country of origin
Many benefits of compliance…
Think outside the border
Parochialism stunts growth
Biggest opportunities are global
Solutions
 Work with a partner specializing in global business
 Partner who focuses on customs and trade compliance can save
millions:
• Help businesses avoid fines, delays
• Ensure they don’t pay more than necessary
Questions?