Transportation & Logistics issue: Customs

As competition increases across the globe, today’s companies expect greater efficiency and accuracy from their suppliers.

At the same time however, local governments have expanded and fine-tuned their trade legislation, requiring companies to also increase scrutiny of their own import, export and indirect tax (customs and VAT) strategies to be sure that they comply with complex local laws. Failing to integrate compliancy requirements into logistics operations could cause these companies to incur unnecessary indirect tax costs, slowing their supply chains, increasing order completion time, and incurring other import and/or export risks related to non-compliance.

Our team can help you to understand address the complexities of international trade, customs, and indirect taxes and works with you to develop cost-effective strategies, efficient and effective compliance programs, and business processes that keep your supply chain running smoothly The group teams with PwC’s international tax, transfer pricing, M&A, and assurance professionals to deliver fully integrated solutions designed to decrease your customs and VAT costs and risks including:

  • Supply chain security optimisation (Authorised Economic Operator certification, Customs Trade Partnership Against Terrorism.
  • Review of internal and cross company customs clearance requirements
  • Customs value and transfer pricing
  • Support with certification and process changes
  • Global management of indirect taxes
  • Export control

Case study: Support of a global logistics company to obtain AEO-status

The issue

In order to ensure a continuously safe supply chain for their customers, the logistics provider wanted to acquire the status of an authorised economic operator (AEO). In the long-term the company would gain a competitive advantage and an additional quality characteristic by obtaining the AEO certificate.

Our solution

PwC developed a systematic approach to assist the logistics provider with their compliance and admittance to the AEO program, quickly and efficiently. We analysed all customs related transactions, identified necessary process adjustments and were in continuous contact with the responsible customs office regarding the application process. After complying with the AEO requirements to formally commit to the “program”, we documented the current supply-chain procedures, performed a gap analysis and identified steps for enhancement. Afterwards we offered continuous assistance during the preparation phase and conduct periodical reviews.