When the Rubber Meets the Road: Warehousing Solution Goes on Overdrive
Evans Distribution Systems deployed its warehousing solution to ensure a rubber manufacturer's tires arrived at its customer locations from Taiwan on time, damage-free, and with costs contained.
American Kenda Rubber manufactures automotive, bicycle, powersport, trailer, and wheelchair tires in Asia. Seventy-five containers of automotive tires were en route from Taiwan when the company learned that the U.S. government was imposing elevated duties (anti-dumping duties). Kenda needed to find a provider of warehousing services in a facility designated as general-purpose Foreign Trade Zone (FTZ) located near their Columbus, Ohio warehouse quickly, to avoid the unanticipated costs.
But the logistical challenge was only just beginning, and Evans Distribution Systems' solution would go far beyond the FTZ. Tires already en route to both East and West Coast ports needed to be intercepted before entering U.S. Customs and rerouted to the Detroit ramp for entry into Evans' Foreign Trade Zone. Port congestion, backlogs, and bottlenecks meant containers were arriving at different times and different locations, adding further complexity to the already complicated international logistics challenge.
The government imposed a restrictive timeline during which the tires could be released from the FTZ into U.S. commerce duty-free. The documentation needed to be 100% accurate and the timing had to be precise to clear the tires and release them from the FTZ within the designated window to avoid the additional taxes.
Evans' transportation team went into high gear to redirect 75 containers to Detroit all while maintaining the documentation. Upon arrival at the warehouse, Evans increased staffing resources to ensure containers were unloaded, inspected for damage, and inventoried by SKU. The inventory list had to be error-free otherwise FTZ status would be jeopardized.
A second shipment of 57 containers arrived a few months later. Evans arranged the drayage from the ramp to the warehouse. Once received at the warehouse, the containers were unloaded by the Evans team in the FTZ after which Evans arranged for the return of the empty containers.
Next, Evans helped Kenda prepare for the tires' release from the zone. U.S. Customs determines a specific time period when goods can be released from the zone known as the Gap Period. To prepare, Evans reviewed timing on previous clearances and ran test clearances to understand how long the government would need to process the paperwork. A week before the window opened, they had a final run-through of the physical and electronic elements for the FTZ exit. In the end, all 132 containers were released in two weeks and successfully avoided the anti-dumping duties.
Evans' Progressive Distribution Centers, Inc. division implemented the Foreign Trade Zone warehousing solution while its Evans Logistics Inc. brokerage division arranged carriers for the outbound loads and scheduled pick-up and delivery appointments at Kenda's customer locations throughout the United States.
All in all, the Evans team helped Kenda reach their key goals. Kenda utilized an FTZ warehouse to legally avoid elevated duties. And they ensured their tires arrived at their customer locations on a restrictive timeline, damage-free, and at the least amount of cost to Kenda.