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Background
Our automotive clients include vehicle
manufacturers, component suppliers
and distributors. The automotive sector is characterized by continuous
innovation in an effort
to achieve brand identity and value
and thereby drive sales and profits. Global overcapacity, pricing
transparency and labour
management are just a few of the issues
facing this sector.
Customs and international trade issues
Many automotive companies exploit opportunities
to reduce duty obligations through the utilisation of export credits,
local content schemes, drawback, bonded warehousing and other customs
planning techniques and programmes.
Complete Knock Down (CKD) assembly programme
sare frequently operated usually in close
co-operation with an indigenous assembler/importer.
Royalties, retroactive and prospective
price increases are constantly under
scrutiny by the customs authorities, with constant challenge sto
the transfer price.
Many automotive companies use AICO's,
which are an ASEAN initiative designed to facilitate free trade
in the Region. AICO arrangements provide beneficiaries with substantial
cost advantages (because of lower tariffs and taxes) over importers
of assembled vehicles from within, or outside the region without
any trade preferences. However, in our experience, many automotive
manufacturers struggle to fully utilise this relief which is dependent
on bi-lateral agreements between participating countries.
Solutions to help you succeed
We can review the accuracy of existing
custom reporting systems to provide assurance that automotive clients
are making accurate returns/declarations; and are meeting their
obligations under preferential origin schemes;
We can assist automotive clients to develop
comprehensive company-wide global customs compliance and systems
reporting and filing processes that ensure that duty values are
consistent with local rules;
We can assist automotive clients with
customs inquiries, reviews, audits, etc.
in connection with duty and related tax payments; and
We can provide assistance to automotive
clients on how to structure price adjustments
for defective goods and warranties.
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