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Customs

Appropriate valuation and classification will reduce headaches and boost your bottom line

In the highly competitive environment of international trade and global sourcing, an ability to manage the customs process and other links in the supply chain is mission critical. Smart companies that manage this process efficiently are better positioned to concentrate on strategies to improve financial performance, reduce logistics costs, improve customer service levels and meet changing customer needs.

The issues
Clearly, customs duty savings have a direct impact on a company’s bottom line. In addition, the ability to manage the customs and international trade process directly impacts customer satisfaction. High-volume global traders wishing to achieve optimum savings and customer service face significant issues:

  • potential to overpay duties, overlook compliance issues and incur unnecessary costs and penalties
  • keeping up with governments’ expanding audit efforts and the increasingly complex rules and variations from country to country
  • difficulty in capturing information to properly manage, plan and report trade costs and customs duties due to data coming from a variety of sources
  • sourcing and structuring of transactions by individuals outside the customs and trade discipline may harm your company’s international trade and customs position

Your challenges
Shortcomings in trade planning, internal controls and compliance processes may cause your company to operate with an uncompetitive and inefficient cost structure in a highly competitive environment. Major challenges that you face include:

  • paying the lowest amount of duties and taxes allowable under the legislative framework for each country involved
  • recognition by customs authorities as being fully compliant with regulations
  • having experts available to interpret complex legislation and regulations for a variety of countries
  • organizing data capture to efficiently plan and report trade and custom costs
  • creating an infrastructure and policies that minimize tax and efficiently move product across international boundaries

The Deloitte solution
The Customs professionals at Deloitte have significant international experience in managing customs implications of domestic and international transactions. The Deloitte team of tax professionals, accountants, customs brokers, former customs personnel and legal advisors will capture tax savings and add efficiency to international transactions. Our specialized services include:

  • import and export compliance reviews and risk assessment
  • business process and costs savings opportunity reviews
  • due diligence to customs and trade risk and opportunities
  • customs valuation planning and analysis of transfer pricing policies
  • customs audit assistance and representation before customs authorities
  • process improvement planning and implementation
  • assessment of global supply chains and compliance optimization
  • selection and implementation of automated solutions for import and export management

The Deloitte advantage
Deloitte is truly unique in offering a full range of services and solutions.

Our dedicated and specialized team consists of not only tax professionals, but also lawyers, government auditors, accounts payable and Workers' Compensation Specialists, former customs brokers and controllers from a wide range of industries. Each specializes in helping companies manage areas of complex domestic and international transactions and has the experience to comprehensively investigate all applicable issues.

This approach, combined with the latest in technology tools and the backing of our multi-disciplinary Deloitte global network, provides full support to our valued clients wherever they do business.

 
The Deloitte process

Phase 1: Analysis

  • audit of current import and export compliance
  • review of current duty assessments
  • audit of supply chain for customs, trade and security compliance optimization

Phase 2: Planning

  • cost/benefit analysis of duty-deferral, minimization, avoidance and recovery
  • customs valuation planning and tariff classification engineering
  • planning of cost-saving opportunities arising from trade activities

Phase 3: Implementation

  • implementation of updated customs policies and their application
  • introduction of efficient data capture and valuation planning practices
  • acquisition of automated solutions for import/ export management
  • preparation for assessment or regulatory audits and representation before global customs and trade authorities