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Customs duty relief for an international sports and apparel brand

PTL Co developed an Inward Processing solution for an international sports and apparel brand, creating a compliant framework for importing, processing and re-exporting goods without unnecessary duty and VAT costs.

THE CHALLENGE

Creating an effective customs framework

Client

International sporting goods and apparel brand

Sector

Apparel and fashion

Scale

UK & EU operations

Engagement

Trade & customs compliance

The client needed an effective customs framework for parts received from EU customers for repair and modification before being returned to the originating customer. The solution needed to support the UK operation while reducing the duty and VAT implications associated with importing goods that would subsequently be re-exported.

PTL Co assessed the suitability of Inward Processing Relief against a Customs Bonded Warehouse. Based on the operating model, Inward Processing was recommended as the more appropriate solution.

EU>UK>EU

cross-border repair flows

£90,000

customs guarentee reference

Zero queries

HMRC approval achieved first time

Duty relief

on qualifying re-exported goods

WHAT WE DID

Customs compliance framework

PTL Co developed the customs authorisation strategy and supported the client through the Inward Processing application, covering operational processes, customs reporting, product classification and the controls required to support the authorisation

1. ASSESS REQUIREMENTS

Review goods movements, operational requirements and customs implications.

2. SELECT APPROACH

Compare Inward Processing and Customs Bonded Warehouse options.

3. DESIGN PROCESS

Define compliant processes covering receipt, processing and re-export.

4. BUILD CONTROLS

Develop customs reporting requirements covering goods, duty, VAT and HMRC reporting.

5. SUPPORT APPLICATION

Prepare and support the customs authorisation application through submission and HMRC assessment.

WHAT WE ACHIEVED

Outcomes delivered

The project established the customs framework required to support the client’s international repair and modification activities. HMRC approved the Inward Processing application and supporting processes without queries. The associated Customs Comprehensive Guarantee application was also approved, subject to the required bank guarantee being established before the authorisation could go live.

Appropriate customs solution identified.

Inward Processing was selected following assessment against a Customs Bonded Warehouse.

Compliant processes established.

Operational processes and reporting requirements were developed to support the authorisation.

HMRC approval secured.

The Inward Processing application and supporting processes were approved without queries

Duty relief framework created.

A framework was established for qualifying goods imported for processing and subsequent re-export.

PTL CO EXPERTISE

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Trade & customs compliance

PTL Co helps businesses navigate the complexity of international trade, reducing customs risk, avoiding unnecessary costs and ensuring goods move efficiently across borders.

From customs classification and valuation to duty reliefs and import/export processes, we provide practical support that strengthens compliance, improves control and reduces costs.