Customs4trade offers a wide range of services to assist companies in making global trade or customs processes more flexible, more reliable and more efficient using the right tools and systems to support them. In general the customs4trade methodology consists of a number of logical steps to achieve the goals in an efficient way. Customs4trade is following this methodology whether it is for a duty saving project, redesigning customs and trade compliance organisation or implementing systems solutions to support customs and trade compliance.

Automating customs compliance

Customs4trade will assist in defining the exact needs and requirements to automate customs compliance processes. Once the needs are defined and agreed, the specifications can be drafted. Customs4trade will assist in drafting or reviewing the specifications in order to guarantee a customs compliant automated process. Also we will provide consultancy for practical and compliant solutions for issues in automating customs processes. Finally we will assist our clients in selecting the most appropriate software vendors.

For companies that have to comply with Sarbanes-Oxley rules or that are applying for the Authorised Economic Operator status, we review and approve the specifications of automated processes that have to be developed or we review and approve existing automated customs processes and systems.

Minimizing duty and global trade cost

Customs duties are a bottom line cost. We develop and implement with clients strategies to ensure that they do not incur unnecessary duties and that they maximize the benefits from the various duty saving possibilities in customs legislation for raw materials and finished products.

Global trade strategy

The past decade inaugurated a new era in the globalization of the world economy with major challenges, risks and opportunities. Companies everywhere are wrestling with the strategic and operational implications of managing longer and more complex supply chains that loop across continents and time zones.
At the same time, customs and trade issues are with many companies not considered as ‘core business’. Customs and trade compliance is often outsourced to various service providers. In such a situation, companies may rapidly become ignorant of possibilities to keep duty and compliance cost at minimum levels.
We have the experience and the methodology to help our clients in answering the challenges international trade is offering. Based on an analysis of the current and future supply chain and the client’s own corporate strategy with respect to logistics and supply chain, customs4trade is formulating and implementing the appropriate customs and trade strategies.

Driving down manufacturing cost

In a growing global sourcing environment, raw materials or components from outside the EU may be liable to customs duties when importing them into the EU for further processing. Many manufacturers are still not aware about the full scale of possibilities to keep the customs duty cost for the imported materials at the lowest levels. Often, the customs duties are also a hidden cost in the supply chain.

Customs4trade has a vast experience in efficiently analyse your business to identify these hidden costs and drive them down where feasible based on the tools offered in customs legislation, such as:

• classifying products in more favourable tariff headings leading to a lower duty rate;
• making the most of trade preferences in selecting suppliers resulting lower or zero duty rates;
• clearing the customs value basis from non dutiable elements resulting in a lower duty amount;
• using relief schemes such as Inward Processing Relief or End Use to avoid payment of duties under certain conditions;
• applying the duty rate of the finished product in case the duty rate applicable to the finished product is lower than the duty rate of the imported materials;
• applying for a tariff suspension in case the imported material is not sufficiently available in the EU.

Minimising duty cost for finished products

Import into the EU of finished industrial or consumer products is still increasing year after year. When valuable goods are imported in large quantities, even low duty rates have substantial effect on the profitability to distribute these imported products in the EU.

With an in-depth analysis of your supply chain and your product catalogue, customs4trade will identify the opportunities to minimise the duty cost of the imported products. Customs legislation is offering the tools to achieve lower costs and higher profitability, such as:

• classifying the products in more favourable tariff headings leading to a lower duty rate;
• shifting minor assembly activities in the supply chain to achieve major duty cost savings;
• using a ‘first sale for export to the EU’ customs value resulting in the lowest possible taxation basis for customs duties;
• unbundling the transaction value or transfer price with cost elements that are not dutiable;
• using customs warehousing arrangements to avoid or defer payment of duties;
• using simplified procedures to keep compliance costs at minimum.

Managing customs and trade issues

Customs4trade has the experience and knowledge to assist you in a wide range of customs and trade services such as:

EU customs classification services

Classification is a serious matter. Customs4trade is able to provide you with expert classification advice. Our advisory classification services range from classifying one product to classifying an entire product line.

Sarbanes Oxley – Internal audit compliance

Many companies engaged in international trade have regarded customs duties and compliance with customs regulations as unavoidable business expenses for which there was little or no possibility to plan and have managed them by outsourcing it to logistics service providers. However, the Sarbanes-Oxley Act, especially section 404 (SOX 404) and increased sensitivity to security aspects of cross-border trade have made companies aware of the risks of penalties for non-compliance with customs and excise legislation. The impact of the Sarbanes-Oxley legislation in the US is being felt all over the world, as foreign SEC-listed companies have toe to comply with it and other governments adopt its principles. Customs compliance can no longer remain hidden in the logistics process. It will have to be part of the business strategy aimed at controlling costs and risks. Customs4trade is setting up, applying and monitoring risk analysis programs for customs compliance for companies in international trade.

Customs/excise compliance support

The way customs authorities are controlling goods has changed in the last years. Traditionally, the focus was on physical checks and documentary controls at the point of import or export. Now, customs is emphasizing more and more on audit based controls with retrospective reviews of the trader’s accounts and records. Because of the intervals between the moment of import or export and the moment of the customs audit, non compliance issues may lead to significant retrospective exposures to customs duties, interests and possibly penalties. To avoid problems with customs audits, Customs4trade is assisting companies in developing their in-house customs/excise procedures. Audits with the authorities are prepared and managed and assistance is given were issues arise.

Impact assessment business restructuring

When restructuring business or in case of a merger with or acquisition of another business, customs processes, rulings and authorisations may be affected. In such a situations it is advisable to assess the impact of the changes on beforehand and to take the necessary actions to assure a smooth transition. Also, restructuring business may disclose new opportunities to minimise duty and global trade cost.

Impact assessment transfer pricing policy on customs value

Transfer pricing is an issue which affects every company with international affiliates. Goods moved across international borders and imported from one customs jurisdiction into another are potentially subject to customs duties. In determining the transfer price for such goods, it is highly advisable to give consideration, not only to the international corporate tax implications, but also to the customs duty implications. Careful planning is necessary to achieve inter company pricing which satisfies the requirements of both the tax and customs authorities without incurring excessive liabilities.

Customs rulings and authorisations

It is possible to conclude rulings with customs authorities for important issues such as classification of goods (Binding Tariff Information), origin (Binding Origin Information) or customs value (e.g. for a first sale for export value, for adjustments etc.). Also for many customs procedures such as inward processing relief or processing under customs control, authorisations from customs are required before starting.
Many companies underestimate the importance of the strategic issues that are involved with the application request for a ruling or authorisation. Customs4trade has the experience how to draft the application request to take fully advantage of the legal possibilities. Also, customs4trade knows with what authorities the application should be submitted or what authorities should be contacted.

Country of origin compliance

The origin of imported goods can have a considerable impact on the applicable duty rate. If manufactured (substantially processed according to specific conditions) in a country that has a preferential agreement with the importing country, the duty rate is reduced, often to zero. For companies with goods flows and processing of goods in different countries, setting up and maintaining systems to manage the origin of the goods is inevitable. Automating the origin management is the only solution to avoid the risk of unlawfully issuing origin certificates or origin labelling. Customs4trade is assisting companies in setting up the origin management system and applies with the customs authorities for European authorisations to centralize origin management in one single Member State of the EU.

Single European Authorisation

Based on EC customs legislation, it now already possible to centralise customs management is one EC Member State. For companies with customs operations in many Member States the use of a Single European Authorisation may be one of the solutions to reduce compliance cost and improve control of the customs process. Authorisations and rulings are concluded with one Member State resulting in more consistent customs procedures. Besides the specific authorisation request with the authorities, one of the key factors for a successful implementation is the appropriate system support for the customs procedures.
Customs4trade has already assisted several clients in applying and implementing a Single European Authorisation.

Duty reclaims

Under certain conditions an importer may reclaim overpaid duties. Overpaid duties may be caused by errors in the classification of goods, missing preferential origin certificates at the moment of importation, errors in customs valuation etc…
Customs4trade will assist in identifying the duty reclaim opportunity and in drafting the duty reclaim towards the customs authorities taking into account the details of the legal grounding.

Litigation support

Customs4trade is assisting clients in solving disputes with the customs & excise authorities.

Other Consulting Topics

• AEO
• Export Control Compliance