U.S. Exporters Leave Millions in Duty Savings Unclaimed When Trading with Australia.DULLES, Va. -- Vastera Study Indicates Majority of Companies Not Positioned to Reap Savings from New Free Trade Agreements The results of a study conducted by Vastera, Inc. (Nasdaq:VAST), the worldwide leading provider of solutions for Global Trade Management (GTM See Good-this-Month order. ), indicate that a large majority of U.S. exporters are not taking full advantage of duty savings associated with new preferential free trade programs such as the US-Australia Free Trade Agreement. The preferential trade agreement between the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Australia became effective the first of this year, yet in researching approximately 60 U.S. companies that export goods to Australia, Vastera found that, in some cases, millions of dollars worth of duty savings remain unclaimed. One such company, a global manufacturer that has outsourced its duty minimization program, will obtain a benefit of over $3 million dollars annually by leveraging Vastera to certify its goods against the rules of origin and properly qualify for the US-Australia Free Trade Agreement. "The complexity associated with understanding and leveraging Free Trade Agreements is beyond of the scope of many companies because they either lack the expertise, resources, technology, or all of the above to do it efficiently and cost-effectively," said Adrian Gonzalez For Adrián González footballer, please click here. Adrian Gonzalez (born May 8, 1982 in San Diego, California) is a Major League Baseball first baseman for the San Diego Padres. He was the first overall pick in the 2000 draft by the Florida Marlins. , Director, Logistics Executive Council, ARC Advisory Group. "Many companies eventually come to a decision point: either invest internally or outsource to a provider such as Vastera." The reasons cited by companies for not taking better advantage of new Free Trade Agreements include: --The proliferation of Free Trade Agreements. Today, more than 300 trade programs exist around the world, and more are being developed. The US-Australia Free Trade Agreement went into effect in January of this year, while the new Mexico-Japan trade program is expected to take effect in April. Some companies are still struggling to maximize fully older programs like NAFTA NAFTA in full North American Free Trade Agreement Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's and are unable to keep up with the growing number of programs being enacted. --Bandwidth. In many cases, the logistics or global trade departments at companies are too stretched to handle the complexity and detail associated with participation in numerous free trade programs. The infrastructure and support to leverage these programs simply does not exist. --Lack of in-house expertise. Global Trade Management is a niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. that requires experts with deep knowledge. Many companies do not have the in-house experience required to manage such programs effectively. "Participation in preferential trade programs such as the US-Australia Free Trade Agreement can generate significant duty savings if done properly," said Tim Davenport, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Vastera. "Companies choosing to hire an expert global trade management provider, such as Vastera, are able to leverage a knowledge base and technological infrastructure that already exists. The trade experts and technology from Vastera are being leveraged to minimize duty payments, get goods across border more efficiently, and provide a comprehensive audit trail for customs. Outsourcing this function enables companies to focus more on their core businesses." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. PIERS (the Port Import Export Reporting Service), the top U.S. exports to Australia include paper products, tires, hardware, automotive parts, and lawn mowers and garden equipment. For further information on the US-Australia Free Trade Agreement and US exports to Australia, visit http://www.piers.com/Newsletter/Dec2004/index.html. About Vastera Global Trade Managed Services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality Vastera's Managed Services offerings consist of business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in solutions that combine Vastera TradeSphere(TM) technology solutions, proprietary global trade methodologies and processes, and trade expertise. Vastera offers services to manage all or a portion of our clients' global trade operations, ranging from specific global trade functions to providing a complete Managed Services engagement. Vastera's Managed Services offering helps clients reduce their global trade operating costs operating costs npl → gastos mpl operacionales and to realize benefits such as enhancing regulatory compliance, capitalizing on preferential trade programs, increasing speed in their global supply chain and improving supplier sources. Vastera's Global Trade Managed Services customers include Avaya, Black & Decker, Ford Motor Company, General Electric, International Truck and Engine Corp., Johnson Controls Johnson Controls, Inc. (NYSE: JCI) is a United States company, based in Milwaukee, Wisconsin, specializing in the design, manufacturing, and installation of automotive systems, automotive batteries (Optima[1] based in Denver, Colorado) and climate control systems. , Johnson & Johnson, Lucent Technologies, and Nortel Networks, among others. About Vastera Vastera is the worldwide leader in providing solutions for Global Trade Management (GTM). Utilizing Vastera's GTM solutions, clients realize trade cost savings and supply chain efficiencies while improving compliance with government regulations. Vastera's GTM solutions include: TradeSphere(TM) (software), Trade Management Consulting (business process consulting), and Managed Services (business process outsourcing). As the only publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. focused exclusively on global trade, Vastera is headquartered in Dulles, Virginia and has nearly 650 professionals in 14 countries. With over 400 clients throughout the world, many of the world's largest corporations utilize their GTM solutions. For more information, please visit www.vastera.com. This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Statements in this press release that are not strictly historical are "forward looking" statements, which are subject to the many risks and uncertainties that exist in Vastera's operations and business environment. These risks and uncertainties may cause actual results to differ materially from the expected results and include, but are not limited to, Vastera's limited operating history, history of losses and anticipation of continued losses, potential volatility of quarterly operating results, the ability to successfully implement Vastera's expansion plans successfully, risks related to the Internet, risks related to legal uncertainty and other risks which are set forth in more detail in Vastera's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , as may be amended from time to time, as well as other reports and documents filed from time to time with the Securities and Exchange Commission. |
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