The customs coyote in the spotlight

In many indigenous cultures, the coyote is seen as a creator figure, bringing animals, the sun or saving the world from danger. I see a clear analogy in the world of customs. Companies came under pressure during the tariffs debate with the US, and the person responsible for customs had to identify risks, explain them and point out ways to mitigate them. Solutions such as using optimisations (first sale), shifting production or adjusting pricing models (for example, unbundling services) are intended to bring companies back into the sunshine.

Traditionally, responsibility for customs has been, or still is, located within logistics. Managing day-to-day challenges and ensuring smooth deliveries is the core task. This operational role remains important. At the same time, however, new strategic functions are needed, along with an understanding of customs at regional and global level, depending on the size of the organisation. Interfaces between procurement, sales, logistics and finance must be clearly managed.

The discussion around US import tariffs has led to customs taskforces springing up like mushrooms, as the topic suddenly became widely discussed and reached C-level. Sensible in the short term, but by definition taskforces are temporary. Now is the time to build a robust, interdisciplinary customs function. Given the close links to topics such as transfer pricing (customs value), import VAT and accounting (cost transparency), I consider locating it within the finance team to be sensible. New responsibilities include, among other things, process adjustments (with the supply matrix as a basis), reviewing master data management and strategic planning using customs data analysis and tools.

The ‘customs coyote’ must become socially acceptable without losing its omnivorous traits. Only then can risks be managed, opportunities seized and the customs organisation set up for long-term success.