Optimizing Trade Compliance and Purchase Tariffs Using ERP Systems In global pharma trade, managing purchase tariffs and staying compliant with shifting regulations. are important. Failure to do so can lead to cost delays and penalties.
Tariffs often comprise a major part of landed costs, and Juleb ensures that tariff data is accurately factored in during procurement. Juleb ERP offers a robust solution by streamlining tariff calculations, Harmonized System (HS) code management, integration, validation of procurement cost, etc
Integrating Tariffs management into the procurement process, pharmaceutical companies can gain clearer visibility, minimize mistakes, and ensure the timely and compliant import and simultaneously keep accounting books clear. With increasing regulatory pressures and trade unpredictability, relying on an ERP system for tariff and compliance management has become not just a good practice, but a necessity.
What are Tariffs?
A purchase tariff, also known as an import duty, is a tax imposed by the federal government on goods imported into the country. These tariffs are designed to protect domestic industries, generate revenue, and regulate trade balances.
How Can ERP Software Help Manage the Tariffs Challenges?
Juleb ERP system brings all the moving parts together – Finance, procurement, compliance, and logistics – Offering 360 views of your operation and their impact across the entire business cycle.
Why landing cost breakup visibility matters
Tariffs are overlooked, and this could significantly increase product costs. Many businesses track product costs based on supplier invoices, however, that’s only one part of the picture. The true cost of importing goods, known as the landed cost, includes multiple additional expenses that are not paid to the supplier but directly impact profitability.
Supplier-Invoiced Costs : The direct cost of goods & Landed cost , as charged by the supplier.
Business-Borne Costs : Additional expenses incurred during the import process, such as freight, insurance, customs duties, port charges, storage, inland transportation, etc.
While the first is straightforward, the second often goes unnoticed, and yet it significantly affects true product profitability. Without full visibility into both, businesses risk underpricing products, miscalculating margins, and making poor procurement decisions.
Juleb ERP gives you a complete breakdown of all landed cost components, including Tariffs, helping business understand how every dollar spent—from supplier to shelf—impacts cost of the procured product
Key Landed Costs Not Paid to the Supplier included below:
Import Tariffs & Customs Duties: Government-imposed taxes based on customs value (Cif).
Freight & Shipping Charges: Paid to carriers or forwarders; varies by shipping mode and inconvenience.
Insurance: Covers in-transit losses; often buyer-arranged.
Customs Brokerage Fees: Charged for documentation and clearance support.
Port Handling & Terminal Charges: Fees for cargo unloading and handling at ports.
Inland Transportation: Final-mile delivery to warehouses or distribution centers.
Storage Fees: Temporary warehousing or demurrage charges.
Compliance & Documentation Costs: Fees for regulatory filings, HS code classification, and trade tools.
Failing to account for these costs can lead to understated COGS, mispriced products, and inaccurate profit forecasts
How Juleb ERP’s purchasing module help manage Tariffs : Landed cost challenges
Automated Landed cost calculation Juleb ERP’s Purchase module can factor in below, which allows business to have total visibility per product or shipment
- Tariff Rates
- Freight and Insurance
- Customs and Handling fees
- Inland logistics and tax
This enables precise landed cost calculation per shipment or per product, improving procurement accuracy and financial planning.
Accurate Costing & Margin Analysis Juleb ERP cost platform support decision making through:
- Real – time cost tracking at item level
- Margin calculations as tariff fluctuates
- Cost simulations at the time of receiving
These features help ensure your pricing strategies and inventory valuation reflect real market conditions.
How landed cost allocation work in Juleb?
Juleb ERP allows businesses to have full control over how import-related costs are assigned, tracked, and accounted for—ensuring accuracy from receiving to reporting.
Pre-Validation Cost allocation
Before validating a goods receipt, users can assign landed costs such as freight, insurance, or customs duties at the receipt level, giving early insight into the full cost of inventory. Flexible cost type assignment
Users can classify each cost as either:
- Supplier Payable:
if the cost is included in the supplier’s invoice
- Business Expense Payable:
if it’s billed separately (e.g., freight forwarders, customs brokers)
Weighted average cost integration Both supplier and business expenses are included in product costing, ensuring accurate weighted average cost that reflects total landed value.
Automated accounting on posting the bill When bills are posted:
- Separate accounting entries are created for supplier payables and business expense payables
- Financial reporting remains clear, auditable, and fully aligned with compliance needs
Enhancing sourcing with deeper Supply chain Insights
Beyond landed cost - Juleb ERP empowers smarter sourcing with detailed part-level analytics and benchmarking. This helps you go from cost tracking to cost optimization.
Part level Intelligence: Search by supplier to uncover lead times, alternative suppliers, and price benchmarks.
Know your spend: Gain visibility across procurement to identify high-spend categories and streamline sourcing strategies.
Risk mitigation: Identify supply chain risks—by geography, supplier performance, or part criticality—and take proactive action.
Collaborate better with vendor: Improve supplier engagement through integrated communication tools that support smoother procurement workflows.
Discover cost saving Opportunities: Compare your prices against industry benchmarks and explore alternative parts that meet form-fit-function requirements.
Conclusion:
Dealing with unpredictable supplier timelines, regulatory pressures, shifting tariffs or supply chain disruptions?
Juleb ERP is purpose-built for the pharmaceutical distribution industry, giving you the tools to stay compliant, efficient, and competitive in a rapidly evolving market.
Our specialized ERP platform helps you:
- Manage supplier relationships and batch-level tracking
- Optimize inventory and cold chain logistics
- Handle complex tariff calculations through landed cost management
- Ensure regulatory compliance (e.g., DSCSA, GMP)
- Maintain pricing accuracy and profitability
Whether you're distributing generics, branded meds, or specialty drugs, Juleb ERP keeps your operations resilient, tariff compliant and audit-ready.
Schedule a personalized demo today to see how Juleb pharma-specific ERP can streamline your distribution from end to end.