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Navigating complex waters: How specialised services simplify customs and insurance for businesses

Businesses trading internationally face an increasingly complex web of customs regulations and insurance requirements that can derail operations and drain profits. Changing regulatory requirements, security measures, inadequate insurance coverage, and compliance failures create mounting pressure. Without proper expertise, companies remain vulnerable to delays, penalties, and financial losses.

The right logistics partner with customs and insurance expertise is crucial for international business success, says Detlev Duve, Managing Director of Dachser South Africa. "As businesses face pressure to ensure compliance whilst managing costs, it's essential to partner with a provider that understands the complexities of international trade and can provide customised solutions."

According to Duve, essential factors for navigating customs and insurance successfully include regulatory knowledge, security certifications, insurance guidance, and risk management. "Potential customers should carefully evaluate how their logistics partners address compliance and protection needs. A lack of measures can lead to operational disruptions and financial exposure."

Dachser's approach to customs and insurance covers services including customs data announcements, documentation preparation, and insurance advisory services.

Customs expertise for international trade

International trade requires businesses to deal with customs regulations across multiple countries, each with its own requirements and security protocols. Dachser provides customs clearance services to businesses across all industries.

The company is certified as an Authorised Economic Operator (AEO) in several countries. This status provides customs control benefits worldwide – benefits which Dachser passes on to its customers. "Having AEO certification makes customs controls easier and ensures a consistent international supply chain," says Duve. "Our customs-approved security standards not only simplify customs clearance, they are also a seal of approval for global trading partners."

Effective customs clearance requires more than just form-filling – it demands understanding of international trade regulations and security protocols. Dachser's experience with programmes such as C-TPAT (Customs-Trade Partnership Against Terrorism) positions the company as a trusted partner for businesses requiring reliable customs clearance.

Take the case of businesses exporting to the United States, which must comply with the 10+2 rule under the Importer Security Filing (ISF), where ten defined entries must be transmitted electronically to US Customs at least 24 hours before the ship leaves the port of departure. "We have been working as a registered filer on behalf of clients since 2009," says Duve. "Incorrect, late or missing filings can result in fines between $2,500 and $5,000, making professional handling necessary."

Electronic customs procedures ensure fast and safe handling whilst reducing processing times. Dachser's customs specialists possess deep regulatory knowledge gained through decades of international experience. "We carefully navigate consignments through local and international customs rules and coordinate the entire customs clearance process with local authorities," explains Duve.

As a global business, Dachser has an extensive network and can handle complex customs requirements across borders whilst maintaining the personal touch through local expertise. "Our team of customs specialists understands the details of international trade regulations and uses this knowledge to deliver customised solutions that meet our clients' compliance needs."

Insurance expertise and risk management

When it comes to insurance, shipping to unfamiliar destinations that do not have well-organised infrastructure can add to the risk factor. While damage and loss is rare, it can be very expensive, making insurance costs money well spent, says Duve. Service delivery is at the heart of Dachser's insurance operations. Dachser is registered as an FSP in South Africa and clients benefit from insurance guidance that addresses potential coverage gaps.

"Not understanding insurance implications is a major risk for businesses," says Duve. "Our expert team advises clients on managing risks and filling insurance gaps, often assisting with documentation to ensure smooth clearance and delivery whilst protecting against financial exposure."

For example, when it comes to protecting valuable shipments, it's vital to understand the difference between liability coverage and cargo insurance during transit, explains Duve. "Many businesses confuse freight insurance with cargo insurance, assuming their shipments are covered for full value with freight insurance," says Duve. "This misunderstanding can be a costly error, as freight insurance compensation is calculated on weight basis – meaning the same amount would be paid for one kilogram of platinum as for one kilogram of paper. Cargo insurance, which can be taken to cover the full value of a shipment while it is in transit, protects the customer.”

As a logistics specialist in Africa, DACHSER South Africa is responsible for coordinating almost every aspect of customers shipments. “It makes sense for us to handle cargo insurance too as a value-added service,” says Duve. “We negotiate contracts, pay the premiums and submit claims on behalf of our customers, managing correspondence until a settlement is reached.”

Harnessing global networks

With  433 locations in 43 countries, Dachser's global network provides customs and insurance expertise across key markets. This global reach helps when dealing with international trade regulations and security requirements. Dachser's decades of international experience ensures timely clearances, appropriate coverage, and avoidance of costly penalties and exposure.

"As an international logistics provider, it's essential to maintain excellent relationships with customs authorities and possess deep knowledge of trade regulations and insurance principles," says Duve. "When challenges arise, our expertise and network ensure we are in the best position to assist and keep clients protected and compliant. We strive to be a logistics partner that truly understands the details of customs compliance and insurance protection, committed to safeguarding our clients' interests," Duve concludes.

(ENDS)

About DACHSER:

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide. Thanks to some 37,300 employees at 433 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 8 billion in 2024. The same year, the logistics provider handled a total of 83.2 million shipments with a tonnage of 44.1 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com

Overcoming Africa’s logistics challenges: Dachser South Africa's approach to customs 

Trade is the lifeblood of any economy, and the smooth operation of customs and trade procedures is critical. However, logistics companies moving goods across the African continent face a unique set of challenges. These include inadequate road and rail networks, poor infrastructure, excessive official and unofficial roadblocks, significant border delays and complex customs and excise. A lack of coordination among multiple government agencies often results in inefficiencies and bottlenecks that hinder the smooth flow of goods across borders.

The establishment of a single market has introduced new distribution systems for customs and excise revenue, which has necessitated adjustments from logistics companies. The secretariat of the African Continental Free Trade Area (AfCFTA) agreement launched an interim trading arrangement with eight qualifying countries (Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia) to test the agreement’s provisions while negotiations are ongoing. Although trading under the AfCFTA started in January 2021, commercially significant trade has yet to happen, primarily due to the delayed Phase 1 negotiations on trade in goods and services such as the negotiations on Rules of Origin (RoO).

Regional integration arrangements further complicate matters. For example, the coexistence of the Southern African Customs Union (SACU) and the Common Market for Eastern and Southern Africa (COMESA) poses specific challenges. Intensive documentation requirements, samples for laboratory analysis, complex tariff classification, and valuation delays are some other hurdles that affect trade facilitation.

In this challenging environment, logistics companies play a pivotal role. DACHSER South Africa has been successfully navigating these complexities for over forty years, providing comprehensive logistics and customs management solutions that ensure the smooth movement of goods.  “Our commitment is to provide our clients with a holistic and seamless solution and we see ourselves as an extension of their businesses.  This means that we take care of all aspects of the transportation, including customs, storing, handling and the safe delivery of goods from origin to destination.” 

To deal with customs challenges, DACHSER focuses on compliance, transparency, and adaptability, says DACHSER Managing Director Detlev Duve. "Compliance with local and international customs regulations is essential, requiring a detailed understanding of these laws and regulations. Transparency in operations helps build trust with authorities and clients, while adaptability allows logistics companies to adjust to changing regulations and market conditions."

In order to avoid significant time delays and unforeseen cost implications, Duve says it’s vital that companies involved in international trade understand and comply with changing regulations and requirements. However, getting to grips with regulatory environments be challenging for companies and divert resources away from core business priorities, making a trusted logistics partner an essential part of doing business.

Duve says DACHSER's teams are well-versed in customs regulations and procedures. “We ensure compliance with customs requirements, including correct classification and documentation, which can save customers considerable time. Understanding Incoterms and maintaining a good working relationship with local customs authorities are key components of our approach. We further consider where costs can be saved or passage expedited. For example, certain processes could entitle an importer or exporter to claim back a percentage of duties paid to customs.” 

Customs developments have also created some opportunities for logistics companies and clients to streamline their operations.  For example, in South Africa, the government has introduced measures such as accredited client statuses for those registered for customs and excise activities.

Global logistics operations like DACHSER are also able to fully leverage technology to improve their customs handling processes. “Our digital tools assist in accurately calculating duties, tracking shipments, and ensuring documentation is correctly filed, reducing the risk of errors and delays,” says Duve.

DACHSER South Africa also offers value-added solutions for clients such as bonded storage, which allows cargo to be stored for up to two years, improving cash flow for importers. The company further provides an option for clients when a portion of imported goods will be directly exported, sparing them from having to pay duty and VAT twice. “If the client does not need to clear the entire shipment, DACHSER South Africa will clear the goods directly into our bond store and no duty or VAT will be paid until the cargo is moved out,” Duve explains. “If a portion of the stock needed to go to an African country, we would move this out with a bonded truck to that country, where the cargo would be cleared.” 

While the customs landscape in South Africa and Africa presents formidable challenges, logistics companies like DACHSER South Africa have found ways to navigate these complexities and deliver excellent service to their customers. Now more than ever, the value derived from using an experienced logistics provider in Africa can lead to significant cost savings.

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