Using Inward Processing Relief
Franton Limited imports plastic mouldings which it manufactures into car parts for a big automotive manufacturer incurring a customs duty of £90,000 each year.
Franton's customer moved production of its cars over to South Africa a year ago. Franton now delivers the parts to Southampton docks and clears them for customs purposes at which point they become the responsibility of its customer.
Franton discovers that there is a duty relief available to recover the customs duty it pays on the plastic mouldings. It applies to the UK customs authority, obtains the necessary authorisation and implements the required procedures with minimum fuss saving £90,000 each year going forward.
UK customs also agree to allow Franton to recover customs duties paid over the year resulting in an additional £90,000 in the company's bank account.
There are a wide number of duty relief schemes available, many of which are little utilised in the UK but are well used by other European companies. Its time to level the playing field!