Customs Inspection Insurance | ITC | 4PL

Customs Inspection Costs Now Covered Under The Expanded ITC Diligence 4PL Program

Young Company FTZ News

An awkward moment often arises when Importers bring containers with goods into the US that are randomly, and always by surprise, inspected by Custom Border Patrol (CBP) agents. This moment doesn’t come up because of the cargo, or where it came from, or the legality of how it may have gotten there. The irate phone calls from clients and delayed delivery times of goods are just side effects of the true problem: footing the bill that comes with an ill-timed and unexpected random inspection from the CBP.

Who is going to cough up, at times, almost 5 thousand dollars for an inspection that nobody had planned? The Importer (IoR) could do it, but that directly eats into their profit and makes the true cost of importing even more of a moving target. The receiving party, distributor, consignee, end user (a.k.a. someone’s client) could pay for it, but that leads to more challenging conversations and even the potential to lose business. The experience the Importer offers when they hand over goods to their Client is absolutely crucial in an industry rife with political red tape, bureaucratic landmines, surprise tariffs, and seems to always be in global political crosshairs. At the same time, this is also an industry built on decades long relationships with an understanding steeped in trust and processes that are both spoken and unspoken.

4PL (Fourth Party Logistics) experts, like ITC Diligence International, Inc., have seen this problem arise between Importers and Forwarders or Clients time and time again. It’s frustrating, it’s embarrassing, and it can seriously cause delays while the Importers and Distributors iron out the details of who has to pay this unexpected cost. Typically, it’s the Importer who pays, and when the agent hands over that bill it will range anywhere from a few hundred to 5 thousand dollars, at times even more. Depending on the Importer and their budget, this could immediately destroy their profit margins. Now, whatever revenue this latest delivery could have provided, is no longer revenue but a liability! Customs Inspection Cost Insurance makes navigating this roadblock much easier!

Loadstar has partnered with ITC Diligence International, Inc., expanding the 4PL and 3PL programs to now include the unexpected costs of a surprise inspection from the CBP. These insurance policies are issued at any time (24/7), immediately, and over the internet. Claims are paid within 24-48 hours after the Inspection Invoice and Entry Summary are submitted. From the perspective of the Importer, there is absolutely no reason NOT to purchase this insurance. As soon as the CBP agent hands over the Entry Summary and the Inspection Invoice, you can get your policy, submit a claim and get reimbursed for all costs within 2 days! Yes, there is a cost to this insurance, but it’s substantially lower than $5000. The premiums range depending on the container size and whether it’s a Full Container Load (FCL) or Less than Container Load (LCL).

Let’s use a general example to help illustrate the very reasonable and standard premium cost of customs border inspection insurance offered by Loadstar and part of the growing 4PL capabilities of ITC Diligence International, Inc.

In a 40 foot LCL there are typically 6 importers. These are 6 different companies using the space inside the container to import goods. Loadstar has strategically designed their policies to be per container, not per importer, which means the cost of insuring a container can be evenly distributed between importers of goods, lowering the liability even further. A 40 ft LCL costs only $360 dollars to insure. Between 6 Importers, the cost becomes a reasonable and manageable $60 per Importer and the container is covered up to $5000 in inspection fees.

What incredible peace of mind this offers to any Importer stuck between a rock (the CBP and it’s ever watchful eye) and a hard place (making their clients happy and ensuring deliveries are on time).

Fourth Party Logistics, or 4PL management, means the critical thinking behind every function in the supply chain, from producers, vendors and warehouses, to transportation companies, distribution centers and retailers, has been deeply worked through. ITC Diligence International, Inc. has been managing relationships between Importers, Foreign Trade Zones, CBP Agents, and Distributors for decades. As a result, the ability to execute on each section of the supply chain, with significantly less uncertainty, becomes increasingly simpler under the 4PL structure that ITC Diligence International Inc. has designed and developed.

Christmas is just around the corner, and although we all love surprise gifts, any surprises from the CBP are usually not well received. ITC Diligence International Inc. continues to demonstrate its ability to work through any challenge that tariffs, CBP agents, government agencies and other entities throw at businesses who are simply attempting to bring goods into the United States of America; the global powerhouse of discretionary spending.

Contact ITC Diligence International Inc. today to learn more about Customs Border Inspection Insurance, Loadstar and it’s pricing model, the 4PL resource management strategy, or any other challenge Importing may present to your business.