CUSTOMS TAX PLANNING & COMPLIANCE
The dark arts of international supply chain management

WOULD YOU LIKE TO PAY MINIMAL IMPORT TAXES AND REMAIN COMPLIANT?

Customs is key to the success of any importing business. Businesses must consider their positions relating to tax exposure and compliance procedures.

CUSTOMS TAX PLANNING

Import customs duty, VAT, and other levies are significant costs within global supply chains. They can dramatically impact your cash flow and profits. Yet, businesses overlook these indirect taxes during their cost reduction exercises.

Savings may relate to reclaims or be continuous and cumulative. Moreover, it can often be quicker and easier to cut business costs than increase sales for equivalent bottom-line results.

POTENTIALLY SERIOUS SAVINGS & CASH FLOW BENEFITS

DEFER TAXES

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PAY LESS OR NO TAXES

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RECOVER PAST TAXES

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What We Do...

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Newsletter/Updates:

MISCONCEPTIONS ARE COMMON

‘Surely customs taxes are costs of doing business?’

They are automatically applied, but in multiple circumstances taxation is not justified. Legal methods help UK/EU companies compete globally, and businesses are entitled to use them.

‘Our logistics/customs agent handles our affairs.’

They key in customs entries based on your instructions. They do not review supply chains or undertake strategic indirect tax planning.

‘We are already aware of opportunities.’

SMEs and large corporations frequently miss them. Check that you are aware of them all, the recent changes and that they are integrated optimally.

OUR DUTY RELIEF PROGRAMME

Opportunities first require proactive identification and skilful application. They are not a right but offer a conditional advantage to those meeting customs and compliance criteria.

We evaluate your supply chain and an array of relevant areas, such as type of goods; misaligned internal procedures; production regions; physical flows; the competitive environment; purposes of import; stock holding & processing arrangements, and end use.

Where required, we draw upon our wider specialisms to help us evaluate situations more astutely. For instance:

  • Not all opportunities are HMRC-related
  • Activities amongst of 1st tier UK/EU suppliers and customers can signal further benefits
  • We heed the extended supply chain and overseas import taxes that may be borne by goods transiting amongst several countries and different business partners before ultimately importing to our client’s facility. 

ENHANCED OPPORTUNITIES

A 20-year rewrite of customs regulations changed the options available.

Also, Brexit will subject EU trade to new import taxes both ways. Likewise, the UK loses access to over 40 EU trade agreements with the rest of the world, so more imported products from more countries will become newly or more highly taxed.

Customs tax planning is more important. 

WHY US

Our methods include classics of the practice to the latest approaches, supported by a successful track record and testimonials.

We can assist you on a project or no risk fee basis.

Next steps? Assess your annual import duty & VAT liability then request our health check.

COMPLIANCE PROCEDURES

A TANGLE OF COMPLEX & INTERWOVEN RULES

Customs requirements arise from WTO agreements, EU regulations, and HMRC expectations.

As well as revenue collection, customs concerns itself with statistics, supply chain security, and restricted and prohibited cargo; so, both import and export declarations must be given priority.

Customs work must be watertight. It should be supported by impactful procedures and robust record keeping routines and controls. These are both a vital and a basic expectation.

Resource it, enforce it.

A TANGLE OF COMPLEX & INTERWOVEN RULES

Disallowed duty suspensions or VAT export zero-rating

Financial penalties (£250-£2500 each single contravention, back 3 years)

Unrecognised & cumulative overpayments

Tax underpayments & 3 years backdated reclaims

Loss of beneficial facilitations & tax planning options

Border delays, cargo seizure & criminal offences

THE CUSTOMS DECLARATION

The 54-field customs entry declaration is the finale of customs work. It includes crucial information supported by hundreds of pages of legislation and guidance.

This data is the trader’s legal responsibility, not that of the logistics/customs broker. Do you understand and check your customs entries? Do you possesses them?

UNION CUSTOMS CODE (UCC)

May 2016 saw in a major 20-year rewrite of EU customs regulations.

Requirements have changed and have become more sophisticated. They affect all involved in cross-border trading, despite many having yet to hear about them.

While customs and traders are still interpreting and testing the rules, businesses must should remain mindful and keep abreast of new guidance during this teething phase.

After Brexit these changes will remain and be copy-pasted into UK law.

CUSTOMS AUDITS

Technological advancements allow customs to focus on desk and post-import data interrogation.

Customs also police trade for numerous other government departments, and they are now globally networked with customs authorities around the world.

Many companies have yet to receive a customs audit visit. Unfortunately, silence does not mean compliance.

AREAS OF SUPPORT

Customs reviews & health checks
Policies, procedures, & record keeping advice
Classification, valuation & origin
Global free/preferential trade agreements
Import customs tax planning & relief program
Landed price modelling (local & overseas)
Union Customs Code (2016) regulations
Special customs procedures

Authorised Economic Operator (AEO) status
Brexit Risk Management & Planning
Prohibitions, restrictions & licencing
Sanctions & embargos
Industry-specific regulations
Playback & updates of future changes
Customer/competitor import/export intelligence
Software & automation

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