Case Study – Suspension Application and Reclassification for a Major Chemicals Manufacturer

Background

Our client is a major multinational chemicals and food company with a turnover exceeding €1.5 billion per year. We started to work with them to review their import data with the aim of identifying potential suspension applications.

Using our Contingency Fee Model, we agreed that no fees would be payable by our client if our work failed to deliver any savings.

Our Solution

Working in partnership with our client, we started by reviewing their third country (non EU) imports. Through a close working relationship with their chemists, we began to research a number of materials, including Additives, Additive Master Batches and Blowing Agents.

This work led us to format and submit several Autonomous Duty Suspension (ADS) applications on the client’s behalf. If successful these applications would reduce the import duty rate down to zero for those specific chemistries.

Concurrent to the suspensions work, we maintained an ongoing audit check of their import data. In 2015, this resulted in us spotting a tariff classification error for one of their newly imported products. It was anticipated that the subsequent reclassification of this product would have considerable savings opportunities.

A significant and successful duty reclaim was submitted to the customs authorities. The benefit of a duty reclaim is that they can be backdated for up to three years, providing even more savings for our clients.

Results

As a result of our industry leading classification knowledge, we have successfully recovered for our client, close to €1M in customs duty from the EU customs authorities since the engagement commenced.

The benefits of working with us did not stop there, as our ongoing suspensions work saved our client a further €2M per annum. This client also receives all the latest duty suspension application developments far in advance of their competitors, thus giving them a market advantage.

Find out how we can help with our Autonomous Duty Suspension services.

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