Creating value

The environment in Asia, with its myriad of different customs and international trade rules, regulations and compliance requirements presents companies with many opportunities for minimising duty costs. Attention to the fundamentals of customs valuation, classification and origin should assist a business in leveraging these opportunities. Customs planning strategies should always be aligned to the direction of the business.

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 osition they had put Singapore Customs in vis-à-vis their Korean counterparts.
  • Put in place procedures that would assess origin qualification on a shipment-by shipment basis and stop applications for certificates of origin for shipments that did not qualify.
  • Identified ways in which more shipments could qualify and enjoy duty privileges in both Korea and Japan.
  • Benefit for the client

    • Although back-duties were payable, the explanations and process improvements resulted in no penalties being imposed.
    • Additional opportunities for FTA use were identified leading to approximately US$1.2 million in further annual duty savings.
    • Trust and understanding between Customs and our client were restored and improved, leading to a successful application for a higher TradeFirst banding.

    Opportunity assessment

    We were asked by a client to review their potential for us of FTAs at a high level for all their global trade flows.

    How we helped

    We mapped all current and potential future sourcing of materials, destination of finished products and possible location of distribution hubs. We then analysed in detail the top 20% in value of finished goods product flows, by tariff code. We considered production processes and variable sourcing of materials under multiple what-if scenarios.

    Benefit for the client

    • We identified possible annual duty savings of just over US$10 million.
    • We helped the client manage the supply chain change process required to achieve these savings.
    • We provided templates for procedures and key documentation to efficiently manage the application and implementation process.
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    Contact us

    Frank Debets
    Managing Partner
    Tel: +65 6236 7302

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