Audio-Technica Streamlines Customs Clearance with Descartes’ Foreign Trade Zone Solution

Rhea-AI Summary

Descartes Systems Group (Nasdaq: DSGX) announced that Audio-Technica is utilizing its foreign trade zone (FTZ) solution to enhance customs clearance processes and reduce costs associated with exports from the U.S. The FTZ solution helps Audio-Technica streamline supply chain operations by eliminating duties on exports and speeding up deliveries. This initiative is aimed at lowering import costs and improving compliance with customs regulations for efficient logistics management.

Positive

• Audio-Technica adopts Descartes' FTZ solution to reduce customs costs and enhance supply chain efficiency.
• The FTZ solution allows elimination of export duties, leading to substantial savings for Audio-Technica.
• The solution improves compliance with customs regulations, minimizing risks associated with regulatory non-compliance.

Negative

• None.

WATERLOO, Ontario, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq: DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Audio-Technica, a renowned designer and manufacturer of audio equipment, is using Descartes’ foreign trade zone (FTZ) solution to accelerate customs clearance, reduce the costs associated with filing customs entries, and eliminate duties on exports from the U.S.

“As a manufacturer and distributor of high-value, high-volume goods, we wanted to lower costs for imports into the U.S. and increase supply chain velocity by operating our U.S. warehouse as an FTZ to distribute to the Americas,” said Richard Sprungle, Vice President of Operations at Audio-Technica. “The Descartes solution helps us maximize the operational and cost savings benefits of FTZs through automation while ensuring compliance with customs regulations. Using the solution, we can speed the delivery of imports, expedite the distribution of goods to consumers and avoid the duty all together when we export from the U.S. warehouse.”

An FTZ is a secure area authorized by the federal government in which commercial domestic and foreign merchandise receives the same treatment by U.S. Customs and Border Protection (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 foreign trade zone 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 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 Audio-Technica operate its U.S. warehouse as a fully compliant FTZ,” said Preston Barton, Vice President at Descartes. “Global supply chains operate in complex and dynamic regulatory environments and it’s critical to ensure the movement of both data and goods is efficient and compliant. With our solution, customers have a platform to manage the entire FTZ process, allowing them to minimize duties, fees and taxes while upholding CBP rules.” 

For more information about foreign trade zones, visit Descartes’ FTZ Resource Center.

About Audio-Technica
Celebrating over 50 years of audio excellence, Audio-Technica is a recognized leader in the development and manufacture of high-quality personal and professional audio equipment. Founded in Japan in 1962 by Hideo Matsushita, the company made its name by manufacturing state-of-the-art phonograph cartridges and tonearms. Today, Audio-Technica is a worldwide group of companies devoted to creating high-performance microphones, headphones, wireless systems, mixers, turntables, phono cartridges and other electronic products. Learn more at www.audio-technica.com.

About Descartes
Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, performance and security of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, schedule, track and measure delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter.

Global Media Contact
Cara Strohack
Tel: +1(800) 419-8495 ext. 202025                                 
cstrohack@descartes.com  

Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Descartes' solution offering and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FAQ

What is the impact of the Descartes FTZ solution for Audio-Technica?

The FTZ solution allows Audio-Technica to reduce customs costs, eliminate export duties, and expedite supply chain operations.

How does the FTZ solution benefit Descartes Systems Group?

The FTZ solution positions Descartes as a leader in facilitating logistics for clients, enhancing its market reputation and growth potential.

When was the announcement about Audio-Technica's use of Descartes' FTZ solution made?

The announcement was made on November 15, 2021.

What is the stock symbol for Descartes Systems Group?

The stock symbol for Descartes Systems Group is DSGX.