A review from Swedish Customs states that the majority of the largest import companies in Sweden have declared their imports with incorrect values. To reduce risks and costs – team up with an experienced trade and customs management partner.
Customs is a complex field, and to reduce the risks of unnecessary costs, in addition to internal mitigations companies could consider teaming up with an experienced partner that specialises in trade and customs management.
Over five years, Swedish Customs has reviewed the 100 companies in Sweden with the largest value of imports, in order to make sure that they declare their customs correctly, along with taxes and other fees. The review shows that two-thirds of the companies had made errors that resulted in extra fees.
The most common errors were incorrect value of goods declared, entering a commodity code with a lower fee than the correct code, and transactions not being accounted for. In some cases, companies had also paid too much customs duty.
According to Swedish Customs, common reasons for the errors are mishandling or a lack of knowledge. Customs is a complex field undergoing constant change, and even with good in-house competence, there is always a risk that mistakes will be made.
One way to build extra capability and reduce the risk of unnecessary errors is to team up with an experienced partner that specialises in trade and customs management. With expert knowledge, frequent updates and a better overview generally, companies can reduce their costs while increasing efficiency.
There are many advantages to working with a trade and customs management partner, from operational support to strategic advisory regarding performance and optimisation. Please don’t hesitate to explore your options with KGH.
The several hundred free trade agreements in force for goods have to be utilised in an optimised way. And for goods without FTAs, customs duties must be calculated and paid correctly, according to the relevant legislation. With an experienced partner in addition to your internal resources, costs could be reduced and mistakes avoided.
Predictable, speedy, efficient customs processes give customers competitive advantages – reduced working capital, ensuring delivery certainty, and enabling just–in-time business processes. This could be supported both by digital solutions and strategic advisory.
Control and Risk Mitigation
Being involved in international trade means dealing with risks on a daily basis – compliance risks as well as risks with direct economic impact. All of which must be controlled and mitigated through a structured approach. Make sure you get the support you need.
Operational customs issues, such as customs declarations, have not been top of the agenda for most companies, and are very often handled in a fragmented way, spread across many service providers. This can result in lower quality, higher risks and extra costs. Today coordination, centralisation, harmonisation and, ultimately, automation of the processes is the way forward. Be sure not to miss out on opportunities regarding your cross-border trade.
If you want to learn more about customs management and our services, please contact Björn Höglund, Director, Trade and Customs Consulting, email@example.com or UK office, firstname.lastname@example.org