Duty Management Services
Saving money is a key part of any business, but did you know that you can do it during the customs process? Mark Taylor discusses UK duty management services in this article.
What are duty management services?
Duty management is a service whereby, through an initial customs health check, we explore how we can both improve your cash flow and reduce your duty spend when importing goods into the UK.
This is achieved by identifying appropriate customs regimes that will provide economic value, then setting up, implementing and ultimately running those systems on behalf of the client.
I started providing duty management services back in 2010, as I identified that many importers, exporters and customs agents were missing the opportunity to save money within the customs function.
What kind of savings can you get?
It depends on the value of your goods, their nature, their origin, what you do with them on receipt (process/manufacture/sell) and their onward journey. We cannot save duty everywhere, and compliance is essential, but there are many legal reasons to not pay duty or pay it later.
But to put a number on it, one of my most memorable clients was paying £300-400,000 in duty every month. After completing a quick customs health check, we knew we could save them around 50% of that as well as get them a retrospective reclaim in excess of £1,000,000.
As you can imagine, their finances have greatly benefited since that initial project. We’ve saved them significant seven-figure numbers, as well as ensured compliance with their international trade practices. This is why we still manage their customs-approved warehouse, map their commodity codes across several countries, and continue to advise them on their customs matters globally.
What stops companies from seeking duty management services?
Finance and customs are both considered complex areas, so many accounts managers and FDs prefer to play it safe and stick to what they know is compliant. This is understandable, as the fear of getting in trouble and paying fines later is very real.
However, much as a company will benefit from the help of tax advisors and accountants, businesses can benefit from having our experience, knowledge and expertise on their side when looking to save duties and associated costs – legally. This is what we do.
The other obstacle is that it can look daunting as a time and labour-intensive exercise to look into duty management savings. Thankfully, our quick scans are just that: simple and quick.
What does a health check involve?
During your review, we create a ‘picture of your business from a customs perspective’. This includes looking into HS classifications, duty spend, VAT spend, where your goods are being bought from and sold to and which customs functions the business already has in place.
From there, we report back to you to ensure that we have a correct understanding and then prescribe the solutions which will give you the best value.
Fundamentally, those solutions serve to optimise your cash flow, educate your people on how to follow the correct processes to reduce risk, and ultimately help to increase the shareholder value of your organisation.
How do you start the process?
Book a quick scan with one of our consultancy team today. Whether you’re looking to save money with duty management services or just want an overview of your customs health, we’ll look after you.