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ARTICLE · 07 SEPTEMBER 2014

Offshore distribution centres: we know the savings ... what are the risks?

Hunt & Hunt
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An increasing number of companies are achieving supply chain efficiencies by establishing a regional distribution centre.

AustraliaCorporate/Commercial Law
Russell Wiese
Russell Wiese
Lynne Grant
Lynne Grant
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Supply chain consolidation through offshore distribution centres is reducing international supply chain costs but may be increasing exposure to the risks of customs non-compliance.
While management's focus is on cost savings, those savings will soon evaporate if non-compliance results in goods being stranded at the border.

An increasing number of companies are achieving supply chain efficiencies by establishing a regional distribution/consolidation centre or hub (DC). However, we are increasingly seeing sophisticated supply chains being set up without enough attention being given to the customs implications. Not only does this result in reduced levels of customs compliance, but may also result in customs duty being overpaid.

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