SEATTLE – (COMMERCIAL THREAD) –Avalara, Inc. (NYSE: AVLR), a leading provider of cloud-based tax compliance automation for businesses of all sizes, today announced the addition of new features to its offering cross-border solution: Support for trade treaties and management of trade restrictions. These new features allow companies to take advantage of preferential treaty tariffs in their landed cost calculations and avoid selling items in countries subject to customs restrictions.
“As e-commerce multiplies, e-commerce enables sellers of all sizes to reach customers internationally,” said Kevin Permenter, research director, IDC. “When it comes to cross-border trade, tools that make it easy for retailers to consider applicable treaties and trade restrictions can save money and minimize shipping interruptions.
Support for cross-border trade treaties
Trade treaties are formal agreements between two or more countries that facilitate trade between them by reducing tariffs, quotas and other trade restrictions. For businesses, assembling and maintaining content related to treaties spanning multiple international jurisdictions is time consuming and resource intensive. Avalara has expanded its tax content coverage to include tariff rates from trade treaties around the world, allowing businesses selling across borders to access lower tariff rates negotiated between countries as preferential rates. . This allows cross-border retailers to:
- Improve the effectiveness of maintaining preferential and punitive treaties. Reduce the time and resources spent on assembling and maintaining preferential and punitive treaties in multiple international jurisdictions.
- Reduce costs and improve the customer experience. Apply existing treaties to transactions to offer lower duty and / or tax rates to customers and help reduce customer churn through improved pricing
- Access treaty information in all regions. Support for cross-border trade treaties is currently available for Canada, Mexico and the United States, as well as countries in the European Union and the United Kingdom.
- Apply treaties to cross-border AvaTax transactions. Support for cross-border trade treaties is available as a feature of AvaTax Cross-Border.
Management of trade restrictions
Managing trade restrictions helps international sellers know what government restrictions are in place when selling goods across borders. This allows cross-border retailers to:
- Increase efficiency. Concentrate their efforts in countries where the products do not present problems of commercial complexity, which allows them to rationalize the classification of Harmonized System (HS) codes, linguistic translation and the calculation of duties and taxes.
- Avoid additional costs. Advanced knowledge of soft restrictions can help avoid the additional costs associated with restricted border orders, such as clearing complex products, securing licenses, and waiving shipping charges for unpaid goods.
- Improve the customer experience. Prevent shipments from being delayed at customs by understanding strict and flexible restrictions before the transaction to provide a seamless shopping experience.
- Access information on trade restrictions in all regions. Trade Restrictions Management currently supports Canada, China, Germany, Japan, United Kingdom, and United States. Additional trade corridors are being actively added.
- Integrate trade restrictions into your cross-border portfolio. Businesses can use Trade Restriction Management as a stand-alone solution with or without HS codes.
“Cross-border trade will continue to be a critical area of growth for businesses to reach new customers and stay competitive, but it comes with its own share of compliance complexity,” said Sanjay Parthasarathy, Product Manager at Avalara. “Our cross-border treaty and trade restriction capabilities give global businesses a competitive advantage by providing them with the information they need to deliver a superior customer experience, improve efficiency and avoid shipping delays. ”
For more information on Avalara’s cross-border solution, please click here.
Avalara helps businesses of all sizes meet their tax obligations. In partnership with leading providers of ERP, accounting, e-commerce and other financial management systems, Avalara offers cloud-based compliance solutions for various transaction taxes, including sales and usage. , VAT, GST, excise, communications, accommodation and other types of indirect taxes. Based in Seattle, Avalara has offices in the United States and around the world in Brazil, Europe and India. More information at avalara.com.