A UK-based Fashion Retailer utilised Falsum’s Duty Management Tool (DMT) to review their overseas purchases in FY21 for overpaid Customs Duties & Import VAT. The Duty Management Tool provided the CEO & Finance Director with a clear breakdown of Border Tax overpayments at over £12.75k for FY21, alone. Through the DMT’s automated reclaim process, the UK Fashion Retailer received an instant cash injection, alongside the data insights to prevent future Border Tax over-exposure.
The Challenge
A UK-based Fashion Retailer utilised Falsum’s Duty Management Tool (DMT) to review their overseas purchases in FY21 for overpaid Customs Duties & Import VAT.
For 2 years, the Trader worked reactively with existing Suppliers and Fast-Parcel Operators (FPOs) to ensure Business Continuity in the face of Brexit and COVID-19. However, the Retailer had found those relationships to be difficult and the increasing transaction costs to be difficult to identify.
The Falsum Solution
The Duty Management Tool identified over £12.75k in overpaid Border Taxes in FY21, alone. The UK Fashion Retailer estimated the overpayments related to over 9% of all overseas purchases in FY21. Consignments of products from the EU to the UK were particularly prevalent.
Many Border Tax overpayments were a result of poor Supplier documentation, whilst many related to the poor practice of FPOs, such as; Customs clearance without waiting for the correct paperwork, misidentifying a consignment’s end-use, misuse of supporting Supplier Declaration or Processing Statements, and good old-fashioned human error.
Some other causes of Customs Duty overpayments were the return of overseas orders, receiving trade samples from potential Suppliers, and receiving damaged goods that were later Returned to Sender.
The Result
Through the DMT’s automated reclaim process, the UK Fashion Retailer received an instant cash injection, alongside the data insights to prevent future Border Tax over-exposure.
The DMT enabled the UK Fashion Retailer with insight to identify the low-performing Suppliers, Hauliers & Customs Agents to limit future Customs Duty over-exposure and tighten supply chain compliance.
