Due to changes in the supply chain and the UK’s exit from the EU, increased duty costs threatened the competitiveness of a new worldwide car model, and new Special Procedures authorisations were required. The increased costs were perfectly avoidable but keeping up with changing legal requirements presented a huge administrative workload that could not be solved with spreadsheets and outsourced customs formalities.
Honda were looking for a solution to avoid paying unnecessary duty costs for materials
that were sourced from other countries and processed in the Honda plants for vehicles that will then be exported. They implemented both Inward Processing and Customs Warehousing within CAS, allowing them to avoid paying full duty on materials and instead calculating the sum of the duties based on origin and the final destination. By using the IP model, Honda can prevent human interaction with declarations for each car part processed in real time, keeping the car plant producing at maximum speed.
With the Customs Warehousing module, customs declarations are automated to and from Honda’s UK Customs Warehouse, allowing them to keep track of their customs stock, track movements for reporting to the customs administration, and optimise customs duty costs.
Their Item Master Data in CAS is fully in sync with internal ERP systems and commodity
codes get a TARIC check on daily base in order to ensure full legal compliance. CAS allows Honda to manage declarations using an exception-based approach and only take action on the specific subset of customs declarations that need special attention.
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