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Background
Creating a strong brand identity, leveraging
new product categories, and growing the
customer base are core concerns for consumer product companies.
Firms are looking
to maximise profits and market share
in a highly competitive environment that includes such challenges
and risks as demanding
customers, consolidation and global expansion.
Sustaining a competitive advantage is the hallmark of today's
retailing
environment. Changing retailing patterns,
industry consolidation, globalisation and the growth of technology
have blurred the
lines among the traditional role of a
consumer product manufacturer, wholesaler, distributor, retailer
and the customer. This convergence
of the consumer supply chain creates
an opportunity for consumer businesses to optimise the relationship
between their suppliers
and vendors to create timely new products,
streamlined operations, and high quality low cost service.
Customs and international trade issues
The customs and international trade issues
range from tariff quotas to toy safety; from post-importation price
adjustments to eco-labeling. Companies involved in the textiles
sector are undoubtedly aware the abolition of tariff quotas is scheduled
for 2005. This will be of great importance in terms of economic
efficiency and development, as well as general growth in the textile
sector.
Many goods destined for retail sale are
originally imported. Their importation gives rise to a number of
customs issues which must be considered. There are so many customs
and international trade issues facing the retail & consumer
products sector that it is virtually impossible to provide an exhaustive
list.
Solutions to help you succeed
Tariff Classification: when goods are imported
they are allocated a commodity code which determines the rate of
duty applicable. Where products are of an unusual design - falling
between, for example, a T-shirt and a shirt correct – tariff
classification can be difficult with a possibility that the wrong
commodity code could be declared and hence the wrong duty rate applied.
We can help companies design products to get the most advantageous
tariff classification.
Import Licences and Tariff Quotas: many
textile products are subject to import licensing which is again
driven by the commodity code applied together with country of manufacture.
If the wrong commodity code is used the importer could either apply
for import licences where they are not required or not apply where
they are required! The significance is that some import licences
govern tariff quotas and without the import licence, certain goods
cannot be imported from particular countries. We can guide consumer
product companies through this veritable minefield.
Preferential Origin: where goods originate
in certain countries they may obtain reduced duty rates on import
if they meet specific rules. This can be a risk area, since although
the exporter issues the preference certificate it is the importer
who suffers a retrospective duty charge should the certificate fail
verification by the Customs authorities. We are able to assist consumer
product companies to ensure that this risk is eliminated as far
as possible while enabling them to claim preferential origin with
confidence on goods they may previously have thought ineligible.
We can undertake origin engineering also.
Customs Warehousing: customs warehousing
offers duty and VAT free storage of goods until required for sale.
This gives cash flow savings by delaying payment of import charges,
it also allows flexibility in terms of re-exporting stock, carrying
out quality control or re-valuing past season stock before the duty
point. This could prove a particularly valuable tool for catalogue
sales. Have you ever thought about the benefits of selling your
goods from a customs warehouse?
Customs Valuation: as well as problems
and opportunities common to all importers,
the import of retail goods have particular customs valuation issues
associated with them,
for example:
- the treatment of quota charges;
- the treatment of buying and selling
commissions; and
- the inclusion of assists in the customs
value at importation.
e-commerce: We can provide consumer product companies with practical
solutions to fast track them through the regulatory minefield as
they roll-out their e-Business strategies. All the way along the
supply chain, customs and international trade issues need to be
taken account of in the formation of an e-strategy, to ensure that
inter alia:
- the evolving strategy takes full
account of customs consequences;
- potential customs benefits are figured
into the decisions on alternative structures;
- the effect on customs compliance
obligations is known; and
- the regulatory environment is observed
and obstacles to change identified.
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