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Introduction
Few companies are more vulnerable to
economic and political change than those operating in the global
energy sector. Deregulation, globalization, and an increasingly
competitive marketplace are affecting the playing field for
energy, chemicals and utilities industries worldwide. The energy
trading sector appeared virtually overnight in the mid-90s and,
despite recent events, is still forecasted to become a $US 3
trillion market globally by 2005.
Customs and international trade issues
Typically in oil companies, there will
be a small number of staff directly responsible for duty reporting
and accounting. However, outside the immediate area of duty accounting
there are many people whose actions may trigger duty liabilities
or who might, with knowledge, take opportunities to minimise
duty liabilities. In fact, personnel situated in Manufacturing,
Supply, Marketing, Distribution, Industrial, Commercial and Retail
Departments, can all make decisions or take actions which impact
on duty reporting.
Some key duty issues in the energy supply
chain are:
- Maximisation of duty relief's based
on end use of oil and/or status of
the customer;
- Maximisation of movements of oil
under excise duty suspension -
both within and between countries
- to delay payment of duty to Customs until latest possible
time;
- Re-branding and marking of oil changing
the type of product and its duty
status e.g., from high duty unmarked
diesel fuel to low duty marked gas
oil;
- Drawback and reclaims of duty (both
excise duty and import duty);
- Import duty management and control
are of particular relevance to
oil trading activities (including spot market/chain sales
trading); and
- Reporting, minimising, explaining
and accounting for losses and discrepancies
are key issues, since some losses are dutiable and others
are not.
Solutions to help you succeed
We can review the energy supply
chain from refinery to
retail to highlight risk areas and
areas of opportunity and
to ensure compliance and accurate
and timely duty reporting.
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