A Hidden Treasure: How Alegrant’s Customs Audit Uncovered Overpaid Duties (Case Study)

The Concern

The management team of large company was worried about their compliance records, sought assurance that their transactions were fully compliant in case of a Customs audit. They turned to Alegrant to stress-test their internal compliance processes, hoping to uncover and resolve any hidden non-compliance issues.

The Surprise

Alegrant proposed conducting an operational audit—a thorough examination of the company’s compliance processes and the implementation of required procedures. With a dedicated team of Customs administrators already in place, this approach was the perfect fit.

Alegrant’s Experts in Action

For the first time, Alegrant’s experts delved into the processes of this organization. They began by scrutinizing the usual areas where non-compliance might lurk, expecting to find gaps or errors. However, the company’s compliance records were impeccable.

Curious about potential savings, Alegrant’s team decided to investigate how the company managed available duty reliefs. It’s common for traders to overlook money hidden within their supply chain. Upon further inspection, they discovered a critical oversight: a product classification that hadn’t been updated.

The Discovery

A court decision had reclassified one of the company’s products, but this change had gone unnoticed. The company, unaware of the new classification, had been paying duties that were no longer applicable.

The Solution

Alegrant promptly reported this finding to the company. Delighted by the unexpected news, the company quickly compiled their transactions and gathered all necessary supporting documents. Thanks to Alegrant’s expert keen eye, the company not only started benefiting from a 0% duty rate moving forward but also began reclaiming the duties paid over the past few months.

The Victory

This case study showcases the power of a thorough Customs audit. What began as a routine compliance check transformed into a treasure hunt that uncovered significant financial savings. Alegrant’s expertise not only ensured the company’s compliance but also turned an audit into a windfall.

The Lesson

This Alegrant’s story highlights the importance of regular operational audits and the potential hidden value within a company’s supply chain. With the right expertise, what might seem like a standard procedure can reveal unexpected opportunities and substantial savings. For businesses looking to optimise their Customs processes, Alegrant’s meticulous approach offers a clear path to compliance and financial efficiency.

For further reading: How to find Customs Duty reductions across the business

Get an internal audit to check your internal compliance against the Customs code. Contact us info@alegrant.com

Or log into your Alegrant account to contact your expert.