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Time to consider SPs, says customs software firm

[ February 1, 2023   //   ]

Traders can save costs by using Customs Special Procedures (SPs), said software solutions provider Customs4trade (c4T) in a recent series of webinars.

SPs have become more pertinent since the UK left the Single Market, and C4T has seen a big increase in enquiries over the past year or so from companies looking to take advantage of the potential cost savings offered by SPs. 

Some of the most commonly used SPs include Inward Processing, whereby raw materials imported for manufacturing, processing or repair are not subject to duties; Customs Warehousing, which exempts goods from duties and taxes until they leave the warehouse; and Outward Processing, under ‘Returned Goods Relief’ whereby goods temporarily exported for manufacturing, process or repair are not subject to duties.

According to polling during the webinars 53% of attendees identified Returned Goods Relief as an important benefit, and 30% said that they were investigating it.

C4T product marketing manager, Sam Blakeman said: “Given the complexity of many businesses’ supply chains, with Europe and the rest of the world, and the well-publicised upward pressures in operational supply chain costs, it’s become very important for organisations to ensure that they’re avoiding unnecessary duty payments. We’ve been happy to assist clients with the auditing of their supply chains to identify the SP opportunities where they exist, and in many cases to support them in their management of the applicable SP regimes using our cloud-based customs software tool, CAS.”

Companies have in the past faced barriers to companies implementing SP, lacking understanding of how SPs work.  Companies also question whether they can manage, with full compliance, the various control tasks and obligations such as obtaining authorisations and guarantees, administering and controlling stock levels and overseeing all aspects of discharge periods and issuing Bills of Discharge when appropriate.

However, Blakeman concluded: “We’re happy that through a combination of our highly consultative approach and the capabilities and functionalities of our CAS software platform, we are able to support our customers in their SP journey and help them to realise the duty cost savings that they are looking for in as pain-free a way as possible.”

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