Synopsis
A large retailer in Southeast Asia was losing FTA savings because its products were passing through a non-FTA member hub where pick and pack operations were performed. They needed a solution to retain these savings, which were significant.
Customer Overview
- Overview: A leading retailer in South East Asia and exclusive distributor of well-known sports apparel, shoes, & accessories brand
- Vertical/Commodity: Retail/Apparel, footwear and accessories
- Services: Regional distribution center for South East Asia origins
- Volume: Annual throughput: 3,600,000 pieces; Storage capacity: 1,200 cbm
Challenges
- Brand operates Hong Kong hub as consolidation center for South East Asia origins
- Distributor buys from Hong Kong hub thus not applicable for FTA savings for shipments to South East Asia destinations
- Warehouse configuration is floor stack with multiple SKU stored in one pallet
M&H Haulage Group Solutions
- Solution is to setup an RDC in Singapore and bypass Hong Kong hub
- Equip Singapore customs team with regulatory expertise and systems solutions to generate back-to-back Certificates of Origin (Form D) which are feasible in Singapore
- Provide training to origin teams to conduct document validation to ensure acceptability of first leg Form D and second leg back-to-back Form D
Benefits
- Optimized Asia distribution network
- Duty savings from FTA application amounting to, on average, $20,000 per shipment
- Additional fees generated from vendor referral program at origin priced at US$30 per document set
