Descartes’ Foreign Trade Zone solution simplifies customs clearance for ALS

Automated Logistics Systems Simplifies Customs Clearance with Descartes Foreign Trade Zone Solution

Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Michigan-based Automated Logistics Systems is using Descartes’ foreign trade zone (FTZ) solution to help its customers accelerate customs clearance and lower costs for imports into the U.S. by deferring the payment of many duties.

“With our warehouse in Jackson, Michigan already established as an FTZ, we wanted to make customs compliance as easy and cost-effective as possible for our customers,” said Paul McDonald, Strategic Advisor at Automated Logistics Systems. “The Descartes solution helps us maximize the operational and cost savings benefits of FTZs through automation while ensuring compliance with U.S. Customs and Border Protection (CBP) regulations. By automating customs filing procedures, digitizing back-office operations and increasing shipment visibility, we’ve elevated FTZ services for our customers until their goods leave for the domestic market.”

A FTZ is a secure area authorized by the federal government in which commercial domestic and foreign merchandise receives the same treatment by CBP as if it were outside the commerce of the United States. The Descartes FTZ solution allows importers and logistics services providers (LSPs) to comply with CBP regulatory requirements for operating a FTZ in the U.S. by automating detailed chain of custody, access, shipment release and record-keeping processes. The solution is also used to streamline shipment management, customs clearance, classification and warehousing. The Descartes FTZ solution can be operated as a stand-alone module or as part of a company’s wider trade compliance platform.

“We’re pleased to help Automated Logistics Systems improve FTZ operations at its Michigan warehouse,” said Scott Sangster, General Manager, Logistics Services Providers at Descartes. “Importers have different reasons and scenarios for using a FTZ to help defer, reduce or eliminate duty payments; however, many do not have expertise in FTZ compliance and are turning to LSPs to handle FTZ movements. Using our solution, LSPs can provide the FTZ services importers require, without adding labor costs, by automating many task-heavy, repetitive processes associated with goods control, chain of custody requirements and entry filing standards.”