In our March edition we looked at 10 ways that Customs Planning could drive down the costs of a business. In this edition we explore the arguments for employing customs planning now rather than later. In an ever-changing landscape customs laws and practice are constantly being revised and for the most part, stiffened. In other words, customs compliance is more important than ever and your company must keep pace or it risks being swept aside especially when the Modernised Customs Code Implementing Regulations are adopted and Authorised Economic Operator status becomes the norm.

Beginning of the New Financial Year

For a number of businesses, the previous financial year was one that most will be happy to see the back of. The new financial year provides businesses with the opportunity of being proactive rather than reactive and to maximise their potential benefits and financial gains. Financial Directors will have spent a great deal of time and effort in 2009 to cut costs and increase cash-flow improvements, effective Customs Planning will not only provide you with the opportunity to save money but it will also help you to create robust procedures and practise that are transferrable across all areas of tax-planning. The sooner you implement it, the sooner you will start to see a real material return.

Greater Certainty of Costs

If you are looking at using a new supplier or sourcing a new product have you mitigated your risks? For example, if you have decided to import goods from countries that benefit from trade preferences have you researched the Good Faith Provisions or have you ensured that the certificates of origin are valid from that country? Have you sought classification rulings so you know the duty rates and landed costs of the goods? Customs Planning allows you to examine such issues and to mitigate any risks that may arise.

Risk of HMRC selecting for audit

HMRC operates on the premise that if you voluntarily disclose any compliance issues then the potential penalties that you face will be reduced significantly if not waived completely. However, if they turn up to audit you and discover compliance issues or failures then they will more than likely throw the proverbial book at you. Customs Planning will not only allow you approach an audit confidently but it will build the processes and procedures necessary for duty-relief and AEO or SAO compliance.

Always something else to do

As businesses were forced to streamline (and in some cases reduce the number of staff employed) this has usually resulted in the same workload being delegated to fewer people. As a result, Customs Planning more often than not falls off the radar because people are simply too busy to (a) contemplate it or (b) follow it through to conclusion because of restricted time-scales. Employing expert consultants will result in the correct questions being asked at the correct time and instead of procrastination and confusion, it will lead to exact pin-pointing and certainty and an almost certain reduction in the time it will take to identify and remedy any errors.

Risk of lost opportunities

EC Customs Law allows for retrospective recovery of overpaid duties, so in theory, if you have been overpaying duty then you can claim back for up to a period of three years. Therefore the sooner you make a claim the sooner you can see the benefits. Retrospective duty-relief (i.e. implementing a relief such as IPR retrospectively (going back one year)) is difficult and requires additional criteria to be satisfied. Customs Planning will not only identify any areas where duty spend can be reduced but will also enable you to formulate the basis of any retrospective claim.

How can ITS help with Customs Planning?

International Trade Solutions focuses exclusively on Customs Law and Practice. Our knowledge and experience means that we can efficiently and specifically pinpoint the areas where compliance issues can arise. We offer solutions and advice about how to construct processes or remodel them to ensure maximum compliance as well as submitting claims efficiently and robustly. We offer "hands-on" implementation to enable you to focus on other areas that may need your attention and we offer a quick return on investment (typically 400%). If you would be interested to discuss how Customs Planning may benefit your business we offer a free first consultation where we will answer any questions that you may have and will explain the options open to you. Customs Planning is all about putting you back in control so contact us on (01905) 619229 to arrange a meeting. Alternatively you can drop us an email at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit our website to learn more about us or download our free White Papers about various areas of customs law.