By Daniel Ladue • Photos by Jessica McCafferty
The holidays are coming and it’s nothing but the best — a case of Corona Extra, a fine French Beaujolais or prosciutto and figs from Tuscany. Gifts? Of course.
A bottle of Emiliana Merlot for Grandma. She knows her wines and this Chilean blend is her favorite. And for Mom, Coco’s best — a bottle of Nº 5 Chanel.
We take for granted that these items will be readily available to us, either at a store or online. What most of us don’t think about is the process of getting the items to us from Mexico, France, Italy, or Chile. Much like food, we simply expect to find it at some retail outlet. Little thought is given to how it got there in the first place.
But it’s not quite that easy. That case of Corona? It was produced in Mexico, then imported to the United States. Each shipment jumps through a number of hoops that few of us even realize. One of those hoops is the process of getting into America in the first place.
To ease the transfer from one country to another, Customs brokers exist to facilitate the process and make that shipment move faster and more efficiently. Brokers act as intermediaries who simplify the import and export of goods by helping clients and businesses navigate the Customs clearance processes. They act as a bridge between clients and government authorities and enable the seamless movement of goods across borders.
A.N. Deringer knows a thing or two about brokering items into the United States. Founded in 1919 by Alfred Neel Deringer in St. Albans, Vermont, it has changed and evolved with the times. Today it is the largest privately-held Customs brokerage in the United States with over 25 offices scattered across the country with a global agency partnership that facilitates the movement of cargo throughout the world. It is a leading logistics provider of international supply chain solutions that includes international freight forwarding, Customs brokerage, warehousing and distribution, consulting, and cargo insurance services.
Times have always been changing for Deringer, and today is no different. Getting those necessary products for a memorable holiday season and into the hands of loved ones is no easy task and requires a complex alphabet soup of participating government agencies (PGAs). The beer, wine, processed ham and perfume will filter through the USDA, the Food and Drug Administration and, if anything is organic, through the National Organics Program. All of this adds to the complexity of the import process.
Advancing technologies greatly help the import process and, like any good business, Deringer has stayed current. Jerrod Nutt, the company’s Champlain District Manager, helped clarify how Deringer is using emerging technologies to its advantage.
One of the most significant technologies this Customs broker has adopted is the use of a VoIP phone system which makes it easy for colleagues to communicate with each other and customers through their computer or cellphone. Used remotely at home or in person at the office, VoIP helps with automatic call forwarding between offices, which is essential since Deringer is a 24/7 operation.
The business is currently testing the use of AI-enhanced Optical Character Reading (OCR) services to extract data from clearance documents received. This is not only more efficient, but it also helps improve accuracy because it converts text from scanned documents or images into a machine-readable format. Deringer has also been investigating the use of Application Programming Interfaces (API’s) to improve and increase terms of efficiency, standardization and scalability.
Asked how automation has impacted Deringer’s workflow and efficiency in processing shipments, Nutt explained that it has allowed the firm to move away from some of the manual “keying” and concentrate on aspects of the business that are more important to them and their customers. Automation has sped up compliance with the many PGAs and has decreased wait times at the ports of entry. All of that allows the customer who wants that case of Corona to get it sooner than ever.
No matter the business, analyzing data has always been an important tool as a means to improve decision making and compliance. Nutt explained that Deringer’s used of data analytics has helped them and their customers in many ways. In terms of compliance, data analysis allows the company to see the areas where U.S. Customs is focused. PTIs (Priority Trade Issues) pivot quickly and data analytics allows Deringer to identify them. Analytics reduces the administrative burden of compiling statistics manually. This allows the firm to spend more time on more “high risk” transactions.
Nutt further discussed what role blockchain plays in the Customs processes and trade transparency. There was initial enthusiasm for distributed ledger technology, but Deringer found potential uses and expectations are evolving and it is currently a ‘wait and see.’ For the moment, he views this technology planning as a role in the broader goal of “Global Interoperability” where CBP and PGAs would have visibility in the entire supply chain of a product. Deringer will see how large a role this plays in time.
I asked Nutt how Deringer has dealt with advancements in technologies affecting e-commerce Customs processes given the increase in cross-border trade. Currently, U.S. Customs and Border Protection (CBP) has been flooded with low-value shipments due to consumer trends and additional duties (Section 301 duties on China). Pending legislation may exclude articles subject to 301 duties from being imported under de minimis, but it is clear a better way is needed to handle them. Technology has helped provide more data on e-commerce shipments to CBP in advance to help with their targeting.
Finally, I asked Nutt to comment on how technology has enhanced Deringer’s ability to manage compliance and mitigate risks in Customs brokerage. His response, “As with most things, technology improves accuracy, which directly impacts compliance. The efficiencies created by the use of technology allows us to use our industry expertise in more meaningful ways, such as identifying areas of risk and educating our customers. For example, we are able to audit more transactions when we move away from the manual work. The global compliance landscape is transforming and there is an emphasis on “KYC” (Know Your Customer) for service providers like Deringer.” The use of technologies like AI and distributed ledger will eventually change the role that brokers play and Deringer likes to be early adopters of these technologies.
Deringer’s nationwide service centers are located at major air and vessel ports, along the US/Canada border, and are complemented by a global partnership network to facilitate the movement of cargo throughout primary markets of North America, Europe, and the Pacific Rim. All of that means getting the case of Corona or the Nº 5 Chanel more efficiently than ever.
Alfred Deringer could never have imagined how his business would have grown. Nutt commented that the company not only strives to provide a warm and supportive environment for its employees, but works with a variety of well-known companies across the globe that share a similar passion and commitment in the busy world of international trade.
For a 105-year-old company, A.N. Deringer looks pretty darn good.
A.N. Deringer
173 West Service Road
Champlain, NY 12919
518 314-0830
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