Honda - Inward Processing Relief

Industry
Automotive
Country
United Kingdom
When Honda leadership decided on one side to expand its trade flows and on the other side to optimise administration and customs duties by insourcing, it went for CAS in the UK. This allowed Honda not only to achieve their goals, but also to execute faster without expanding the internal team.
Shaun Hall
Customs and International Trade Manager - Honda Motor Europe
Challenge-customer-story

Situation

Due to changes in the supply chain, increased duty costs threatened the competitiveness of a new worldwide car model. These 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.

businessman hand working with new modern computer and business strategy as concept

Solution

CAS, a global trade management solution on Microsoft Azure, breaks down every single car produced into its thousands of parts, links all parts with their import declarations, and calculates the sum of the duties based on origin and the final destination. All this happens in real time without human intervention in order to keep the car plant producing at maximum speed. By using the inward processing relief procedure (IPR) supported by the CAS Special Procedures module, Honda avoids paying full duty on materials that are sourced from other countries and processed in their plants for vehicles that will then be exported. 

business documents on office table with smart phone and digital tablet and graph business diagram and man working in the background

Benefits

  • Business agility, by allowing trade flow expansion

  • Higher margin per car, enabling competitiveness

  • Fully automated and insourced declaration process,  without increasing Honda’s customs and international trade team

  • Full visibility of all customs and trade data

CAS has already generated significant savings in terms of administration and customs duties. We now want to expand this to trade flows outside the UK. Thanks to the agility of CAS, this can happen quickly.
Shaun Hall
Customs and International Trade Manager - Honda Motor Europe

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