Neither was the right fit. Instead, YCA,
making use of specialized software, chose a
“hybrid” approach combining the two
models. Here’s a look at what the importer
is doing and why that strategy has proved
successful.
OUTSOURCE OR IN-HOUSE?
Yamaha Corp. is the world’s largest manufacturer of musical instruments and a leading supplier of audio-visual products. The
company manufactures those products in
In 2010, YCA’s import/export compliance group decided
to address areas where costs were high. One such area
involved products that were imported to the United States
and subsequently exported. Those shipments incurred
duties in both the United States and the destination countries, and YCA was paying customs brokerage fees for both
sets of import transactions. Another concern was the Merchandise
Processing Fee (MPF) assessed on each formal entry, which was scheduled to increase the following year.
YCA discovered that those costs and more could be eliminated or
reduced by importing through foreign trade zones. The company hired
the consulting firm KPMG to guide it through the complex planning and
preparations, including the feasibility study, license application, analysis
of security requirements, methodology for selecting FTZ management
