Customs data is very helpful for traders and businesses that import and export goods because it gives them a lot of information about global trade flows, supply lines, and how competitors are planning to beat them. Businesses can find new markets, improve their sourcing, keep an eye on what their competitors are doing, and meet legal requirements by using customs data effectively. Here is a guide on how to trade with customs info to its fullest.
1. Get to know the basics of customs data
Customs data usually has information about packages, like the names of the exporter and importer, product descriptions, shipment values, and information about the port. Some countries’ government websites have a lot of information about customs, but other countries need to use outside companies to gather this information and make it available.
Key Tip: Get to know the Harmonized System (HS) codes. These are the standard product codes that are used all over the world to group things together. You can make sure you’re analyzing relevant trade data and avoiding costly mistakes if you know the right HS codes for your goods.
2. Look for new market opportunities in customs data
By looking at countries that are importing more of your product group, customs data can help you find new markets. This is very helpful if you want to grow into areas where demand is rising.
Key Tip: To see which markets are growing or shrinking, look at how data has changed over a number of years. Don’t just look at the number of shipments; also look at how much they are worth. Imports with high values can show that there is a market ready to pay more.
3. Keep an eye on what your competitors are doing and how they’re planning to do it
Customs data lets you see the shipping routes, volumes, and main markets that your rivals use. You can learn a lot about your competitors’ strategies and find possible holes in your own supply chain by looking at this info.
Tip: Keep an eye on how the top companies in your field ship things over time. Changes in frequency, destination ports, or sourcing countries are things to keep an eye on, as they could mean new tactics, ways to cut costs, or responses from regulators.
4. Improve sourcing and choosing suppliers
For example, if you’re thinking about joining a new market or finding a new product, customs data can help you evaluate possible suppliers. You can find trusted suppliers with a history of shipping by looking at how often they export. This will also help you figure out how stable their supply is.
Tip: Look at more than one provider and compare how often they ship, how much they ship, and the types of buyers they have. A reliable exporter is usually one that has a lot of buyers and doesn’t depend on just one. This is because they are less likely to be affected by problems in their area.
5. Plan for regulatory compliance and be ready for it
Customs data often has information on tariff classes, duty rates, and compliance, which makes it a useful resource for learning about the rules that apply in different markets. By looking at import records for the countries you want to sell to, you can get a better idea of customs fees and get ready for any restrictions on imports.
Important Tip: Pay extra attention to non-tariff barriers (NTBs), such as limits on imports, marking rules, and health standards. If you use customs data to keep up with these rules, you can avoid delays, fines, and rejects at the border.
6. Look at seasonal patterns and make a strategic plan for your inventory
Demand for many goods is affected by seasonal patterns, with some goods seeing big jumps in demand at certain times of the year. Customs data lets you look at how trade volumes change with the seasons, which is very important for fields like retail, electronics, and farmland.
Tip: Use data from customs to see when the busiest shipping times are and plan your goods around those times. In this case, if data shows that more of a product is being imported three months before the holidays, you can make plans to have extra stock on hand for when demand goes through the roof.
7. Use data from customs to manage risk
You can find possible risks in customs data by looking at things like how reliable your suppliers are, how stable the politics are in the areas where you get your goods, and how the value of the currency changes. By keeping track of your suppliers’ past exports, you can spot risks that come from relying too much on certain areas or suppliers.
Key Tip: You might want to get supplies from a variety of places and keep an eye on customs data for any changes in trade rules, port congestion, or political events that could affect supply lines. Customs data can help you make a more reliable supply chain plan.
8. Compare your performance to standards in your field
Customs data shows the average values, volumes, and shipping frequencies for shipments in a certain business. You can get a better idea of where your business stands in the market by comparing your trade data to these industry norms.
Key Tip: To compare yourself to rivals, pay attention to key performance metrics such as the number of shipments, the average size of shipments, and delivery times. This research can help you find ways to make things better, like moving shipments around more often or cutting down on delays.
9. Use tools for data visualization to get more out of your data
It can be hard to handle looking at raw customs statistics. Use analytics and data visualization tools to get the most out of this info. There are a lot of systems that have dashboards that let you see trade patterns, see trends in shipments, and change reports to fit your needs.
Tip: Set up alerts and automated reports in your data platform to get real-time updates on big changes, like when new competitors enter the market or when supply trends change. This proactive method can help you stay up-to-date and ready to change.
10. Pick the Right Company to Get Customs Data From
If you’re going to buy customs info from a third party, pick one that gives you complete, correct, and up-to-date data. A lot of providers offer data that is specific to certain areas or businesses, while others offer data sets that are used all over the world. To get the most out of the data, look for providers with tools that are easy to use and customer service that can help you.
Tip: Before making a decision, ask for a demo or trial of the platform to check out its features, data correctness, and how easy it is to connect to your current systems. Think about what you need, like tools for visualizing data, ways to make it your own, and regular data changes.
If you are in the import-export business, customs info is very useful. You can gain a competitive edge, improve your supply chain, and make smart strategic choices based on real-time trade insights if you understand and use it well. Customs data, when used strategically, can not only help you with your present plans, but it can also show you how to grow in global markets in the future.