In this Case Study on Customs Audit, we Look though the transactions of a company to spot non-compliances. Instead, we found overpaid Customs duties.
The transaction: A Customs audit with a surprise
A company was concerned about their compliance records. The wanted to ensure that their transactions were compliant in case of a Customs audit. They asked Alegrant to test their internal compliance processes.
The solution: Operation audit
We propose to carry out an operation audit. This type of Customs audit focuses on operations and the implementation of compliance requirements. They had a team of Customs administrators internally so this was the best fit for their requirements.
The implementation: Alegrant’s experts in action
This was the first time that we were looking through the processes of this organisation. We looked at the usual places where non-compliance hide. We found their compliance records to be very good. Then, we were wondering how they manage the duty reliefs available to them. It is very common for traders to be unaware that they have money sitting in their supply chain. We look to see if we could find some savings lying around and we stumbled on a classification that hadn’t been updated.
The company was unaware that a court decision had reclassified a product. Again, this is very common. We reported the opportunity to a very happy client. They have been able to compile the transactions, produced all the supporting documents and the company is now not only benefiting from 0% duty, but they are also claiming back the duty they have paid in the past few months.