Improving Profitability

Planning opportunities 

Are you maximising the benefits of planning opportunities and duty relief schemes? Any duty savings or efficiencies could improve your competiveness and overall profitability. Is it time to take a fresh look at your existing sources of supply and product lines?

Duty relief schemes
A number of schemes exist under which relief from or suspension of duty can be obtained.

Do you import goods for processing in the EU and re-export them outside the EU? Do you temporarily export goods from the EU for processing or repair? Would paying duty on the finished product reduce or avoid duty on imported components and raw materials? Do you benefit from using a customs warehouse to suspend the payment of customs duty (and import VAT)? Do you import goods where there is an insufficient source of supply of these same goods within the EU?

If so, a duty relief may provide substantial benefits for your business.

Classification of goods
The tariff classification of imported goods determines the rate of customs duty applied. Incorrect classification can lead to under or over-payment of customs duty. Have you independently checked that your goods are classified correctly? Have you reviewed import options to benefit from the most advantageous duty rate classification? Do you consider the impact of duty classification when developing new products or enhancing existing ones?

Country of origin
Substantial duty savings can be made by planning around the origin of imported materials and components. The country of origin determines whether imported goods qualify for a reduced rate of duty or whether they are subject to any restriction or prohibition. In addition, Irish manufacturers can exploit various EU trade agreements to target new export markets for duty-free access.

Valuation of goods
The valuation rules for imports determine the amount which is subject to duty. Savings can be achieved by using the most favourable customs valuation method and by claiming all allowable deductions. Have you considered the customs duty impact of royalty, licence fee, or cost sharing arrangements with non-EU suppliers? Does your transfer pricing of inter-company transactions satisfy customs valuation rules?