A UK manufacturer struggled with customs duties and origin qualification for re-exported goods. The lack of detailed origin information from suppliers led to significant overpayments in customs duties.
The Challenge
The business faced high customs duties due to the absence of origin details for imported raw and semi-processed goods. They needed to determine if their manufactured goods qualified as UK origin for re-export and explore customs procedures to mitigate duty costs.
The Falsum Solution
Falsum conducted a thorough audit of the foundry business’ import data using our Duty Management Tool (DMT). We identified overpayments of Customs Duty in the previous 24 months. Falsum also identified the business as an ideal operating model for the Inward Processing Relief (IPR) customs procedure.
Inward Processing Relief (IPR) is best used to defer duties on UK imports whilst those items are processed, changed or transformed. Duties can be saved if the goods are re-exported, as well as providing a cashflow benefit for end-products sold into the UK.
Falsum provided the business with a detailed report with practical recommendations on how to develop and implement the improvements. Falsum also delivered a retrospective customs duty reclaim for the past two years.
The Results
Falsum’s support resulted in a £30k duty reclaim for past imports and enabled the foundry business to apply for IPR, providing monthly cash flow benefits of £3k and annual net cost savings of £10k.
The Conclusion
Falsum’s comprehensive audit and tailored consultancy empowered the foundry business to optimise their customs processes, reclaim significant funds, and achieve ongoing cost savings, enhancing their financial stability and operational efficiency.
