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

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Descartes Systems Group announced that Automated Logistics Systems is implementing Descartes' foreign trade zone (FTZ) solution at its Michigan warehouse. The solution helps accelerate customs clearance and reduce costs for U.S. imports by deferring duty payments. The Descartes FTZ solution automates customs filing procedures, digitizes back-office operations, and enhances shipment visibility while ensuring compliance with U.S. Customs and Border Protection regulations. The system can operate independently or as part of a broader trade compliance platform, helping logistics service providers manage FTZ operations efficiently without increasing labor costs.

Descartes Systems Group ha annunciato che Automated Logistics Systems sta implementando la soluzione per la zona di commercio estero (FTZ) di Descartes nel suo magazzino del Michigan. La soluzione aiuta ad accelerare il disbrigo delle pratiche doganali e a ridurre i costi per le importazioni negli Stati Uniti posticipando i pagamenti dei dazi. La soluzione FTZ di Descartes automatizza le procedure di registrazione doganale, digitalizza le operazioni di back-office e migliora la visibilità delle spedizioni, garantendo nel contempo la conformità alle normative della Dogana e della Protezione delle Frontiere degli Stati Uniti. Il sistema può operare in modo indipendente o come parte di una piattaforma più ampia per la conformità commerciale, aiutando i fornitori di servizi logistici a gestire le operazioni FTZ in modo efficiente senza aumentare i costi del lavoro.

Descartes Systems Group anunció que Automated Logistics Systems está implementando la solución de zona de comercio exterior (FTZ) de Descartes en su almacén de Michigan. La solución ayuda a acelerar el despacho de aduanas y reducir los costos de las importaciones a EE. UU. mediante la postergación de los pagos de aranceles. La solución FTZ de Descartes automatiza los procedimientos de presentación aduanera, digitaliza las operaciones administrativas y mejora la visibilidad de los envíos asegurando la conformidad con las regulaciones de la Aduana y Protección Fronteriza de EE. UU. El sistema puede funcionar de forma independiente o como parte de una plataforma más amplia de cumplimiento comercial, ayudando a los proveedores de servicios logísticos a gestionar las operaciones FTZ de manera eficiente sin aumentar los costos laborales.

Descartes Systems GroupAutomated Logistics Systems가 미시간 창고에서 Descartes의 외환 거래 구역(FTZ) 솔루션을 구현하고 있음을 발표했습니다. 이 솔루션은 세금 납부를 연기하여 미국 수입에 대한 통관 절차를 가속화하고 비용을 절감하는 데 도움을 줍니다. Descartes FTZ 솔루션은 통관 제출 절차를 자동화하고, 백오피스 운영을 디지털화하며, 미국 세관 및 국경 보호 규정을 준수하면서 배송 가시성을 향상시킵니다. 이 시스템은 독립적으로 작동하거나 보다 광범위한 무역 준수 플랫폼의 일환으로 작동할 수 있으며, 물류 서비스 제공업체가 인건비를 늘리지 않고 FTZ 운영을 효율적으로 관리하도록 도와줍니다.

Descartes Systems Group a annoncé quAutomated Logistics Systems met en œuvre la solution de zone de commerce extérieur (FTZ) de Descartes dans son entrepôt du Michigan. Cette solution aide à accélérer le dédouanement et à réduire les coûts pour les importations américaines en différant les paiements de droits de douane. La solution FTZ de Descartes automatise les procédures de déclaration douanière, numérise les opérations administratives et améliore la visibilité des expéditions, tout en garantissant la conformité avec les réglementations des Douanes et de la Protection des frontières des États-Unis. Le système peut fonctionner de manière indépendante ou comme partie d'une plateforme plus large de conformité commerciale, aidant les prestataires de services logistiques à gérer les opérations FTZ efficacement sans augmenter les coûts de main-d'œuvre.

Descartes Systems Group gab bekannt, dass Automated Logistics Systems die FTZ-Lösung (Foreign Trade Zone) von Descartes in seinem Lager in Michigan implementiert. Die Lösung hilft, die Zollabfertigung zu beschleunigen und die Kosten für US-Importe durch die Stundung von Zollzahlungen zu senken. Die Descartes FTZ-Lösung automatisiert die Zollanmeldungsverfahren, digitalisiert die Backoffice-Operationen und verbessert die Sichtbarkeit der Sendungen, während sie gleichzeitig die Einhaltung der Vorschriften der US-Zoll- und Grenzschutzbehörde sicherstellt. Das System kann unabhängig arbeiten oder Teil einer umfassenderen Handelskonformitätsplattform sein, die Logistikdienstleistern hilft, FTZ-Operationen effizient zu verwalten, ohne die Arbeitskosten zu erhöhen.

Positive
  • Solution implementation enables new revenue stream through FTZ services
  • Automation reduces operational costs for customs compliance
  • Technology enables service expansion without additional labor costs
Negative
  • None.

Insights

The partnership between Automated Logistics Systems and Descartes represents an incremental business opportunity rather than a significant revenue driver. While FTZ solutions are valuable for logistics providers, this single customer implementation is unlikely to materially impact Descartes' financial performance given their $9.5B market cap.

The strategic value lies in Descartes' expanding footprint in customs and trade compliance automation. This segment has strong recurring revenue potential as regulatory complexity increases. The solution's ability to integrate with broader trade compliance platforms positions Descartes well for cross-selling opportunities. However, this particular deal's scope appears to a single warehouse implementation.

ATLANTA, Nov. 18, 2024 (GLOBE NEWSWIRE) -- 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.”

Learn more about Descartes’ Foreign Trade Zone Solution.

About Automated Logistics Systems

What is now Automated Logistics Systems (ALS) started before the Great Depression as Parker Motor Freight (PMF). Over the next several decades, the family-owned PMF business grew despite challenging economic times and personal setbacks. The organization eventually grew into what it is today—a true end-to-end logistics partner for companies throughout the continent. ALS provides non-asset transportation and value-add warehousing solutions, and, for those customers having challenges with managing their end-to-end supply chain, ALS offers a fully Managed Transportation Service which is a meticulously engineered solution that is backed by cutting-edge technology. For more information, visit www.automatedlogistics.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, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of 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’ foreign trade zone 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 Descartes Systems Group's (DSGX) new Foreign Trade Zone solution?

Descartes' FTZ solution is a system that automates customs filing, digitizes operations, and manages shipment visibility for foreign trade zones, helping companies defer duty payments and ensure compliance with U.S. Customs regulations.

How does Automated Logistics Systems benefit from Descartes' (DSGX) FTZ solution?

The solution helps Automated Logistics Systems maximize FTZ benefits through automation, ensure customs compliance, and provide enhanced services to customers without increasing labor costs.

What are the key features of Descartes' (DSGX) FTZ solution announced in 2024?

Key features include automated chain of custody, access control, shipment release, record-keeping processes, customs clearance automation, and classification and warehousing management capabilities.

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