Trade Compliance Ensure business continuity with effective customs compliance
Benefit from our long experience working with the trading community and governments worldwide. We help you to manage risk and strengthen your business through solid customs compliance. Contact us today and let’s talk about your needs.
What you gain
STRENGTHENED COMPLIANCE
Adhere to current legislation while reducing operational and financial risk
EFFICIENCY
Optimise work and mitigate risks with clear, well-implemented processes and routines
COST SAVINGS
Ensure correct duties paid while reducing the risk of penalties and costly disruptions
SUPPLY CHAIN RESILIENCE
Avoid disturbances while ensuring utilisation of permits required to realise the trading strategy
Hilde Kalnes
Project Manager,
Borregaard
About the discipline
Customs is a key aspect of trade compliance and fundamental to business continuity. The proper management of commodity codes, origin of goods, customs value, and permits- and licences is essential in ensuring compliance. It is about mitigating financial, operational, and reputational risks, while saving costs and time, and improving the agility of your business. Ultimately, together, it is about placing the company in a stronger position. Get in touch with us today to explore how you can benefit.
Opportunities with Trade Compliance
Understand and assess the impact of new customs legislation, including defining and implementing necessary actions.
Set priorities after an external audit to improve compliance levels and proactively support the evolution of customs compliance in your business.
Improve control and the correct usage of commodity codes, country of origin, and customs value, including establishing the routines and systems required.
Clarify whether unexpected delays in the flow of goods are caused by non-compliance and, where needed, set priorities to manage the outcome.
Revise the usage of free trade agreements and various permits to reduce costs and facilitate operations.
What we can do for you
Our trade and customs services within trade compliance help you to ensure compliance, while helping to reduce costs and strengthen your supply chain resilience. Please don’t hesitate to contact us to learn more.
CLASSIFICATION
WHY?
- Pay the lowest permitted duties and fees.
- Mitigate the risk of fines and other penalties.
- Ensure compliance with regulations and restrictions.
- Utilise free trade agreements.
WHO?
- All companies involved in international trade.
- Companies dealing with many different items or trading with several countries.
- Companies trading with regulated markets.
- Companies entering a new market or developing a new product.
WHAT?
- Determination of the optimal commodity codes to use.
- Maintenance and review of customs master data.
- Translation and matching of current commodity codes to those of other countries.
ORIGIN AND FREE TRADE AGREEMENTS
WHY?
- Optimise duties paid.
- Strengthen compliance.
- Ensure product labelling requirements.
- Ensure smooth customs clearance.
WHO?
- High tariff industries, e.g. textile industries.
- Companies reviewing sourcing strategy, considering trade with other countries.
- Companies trading with regulated markets.
- Companies entering a new market or developing a new product.
WHAT?
- Calculation of correct preferential origin on traded goods.
- Review of origin calculations.
- Evaluation and optimisation of existing preferential agreements.
- Guidance in utilisation of new free trade and preferential trade agreements.
- Guidance when reviewing different possibilities for sourcing of goods.
CUSTOMS VALUE
WHY?
- Ensure compliance.
- Reduce the risk of disturbances in the flow of goods.
- Duty and VAT optimisation.
WHO?
- International corporations with inter-company transactions.
- Companies using a third-party intermediary for selling or buying.
- Importing businesses where there are certain conditions of sales licences and/or royalty fees.
- Companies providing machinery or tools to a third-country supplier.
- Companies handling samples, giveaways, replacement goods and free of charge goods.
WHAT?
- Guidance in how to calculate the customs value and which method to apply.
- Support in determining transfer pricing.
- Analysis of implications on customs valuation when setting up new trade flows.
- Documentation on how the set customs value was calculated.
- Understand what to include in the transaction value.
PERMITS AND LICENCES
WHY?
- Save costs.
- Simplify work processes.
- Ensure the ability to import and export certain goods.
WHO?
- Companies trading goods with special requirements such as chemicals, fish or electrical components.
- Companies reaching certain trade volumes, e.g. customs guarantee levels, cash flow issues.
- Companies facing increased supply chain complexity, potentially causing lack of control or costly administration.
WHAT?
- Customs advice in goods and product handling when entering new markets.
- Screening and optimisation of customs processes to ensure regulatory compliance and identify potential duty savings.
- In-depth analysis of which customs procedures will enable the most duty savings and supply chain efficiency.
- Experienced hands-on support when applying for permits or licences from customs authorities.
CUSTOMS AUDIT RESPONSE
WHY?
- Strengthened compliance.
- Cost optimisation.
- Reduced workload.
WHO?
- Companies that have been audited or are subject to review by authorities.
- Companies being audited by a customer.
WHAT?
- Provide a correct, efficient response by customs experts.
- Analyse and manage audit and information requests from customs authorities.
- Provide second opinion and guidance.
TRADE FLOW SETUP SUPPORT
WHY?
- Ensure an efficient flow of goods.
- Increase customs process efficiency.
- Risk mitigation.
- Cost optimisation.
WHO?
- Companies starting up new business or entering new markets.
- Companies changing sourcing or production.
- Companies making regulatory updates and changes in current trade flows.
WHAT?
- Analyse and advise which Incoterms to use.
- How to utilise permits, licenses, and simplifications.
- Provide advice and reports to make more well-informed decisions.
- Support in implementing change.
- Hands-on support on import and export regulations.
EXPORT CONTROL AND DUAL-USE
WHY?
- Ensure trade compliance and reduce risk.
- Avoid disruptions in the flow of goods.
WHO?
- Exporting companies that trade high-tech or other regulated goods.
- Exporting companies that trade in regulated markets.
WHAT?
- Determination of commodities subject to export control or dual-use.
- Guidance in export regulations.
- Evaluation of existing and potential trading partners, i.e. sanction list screening.
FAQ
What is an HS code?
The Harmonised System (HS) is a globally standardised system for classifying products. It consists of several digits, and the first six are harmonised worldwide. The HS system is updated every five years and is the foundation of the import and export classification system. Customs authorities use HS codes to identify products, apply correct duties and taxes, and gather statistics.
What happens if I use the wrong HS code?
Using the wrong HS code can lead to penalties, border delays, seizure of products, or even a rejection of import privileges. HS codes signify the customs rules for customs authorities, which is why they are so strict about using them correctly.
Who is responsible for using the correct HS code?
The importer of the products is always responsible for classifying the HS code correctly.
What is customs value?
Customs value determines the economic value of the goods declared for import. Together with origin and classification, it provides the basis for which rules apply and how much customs duty you need to pay for your products.
What is the export declaration?
An export declaration is a document submitted at the port of exit, providing details about the goods bound for export. One is needed each time goods are exported to a country outside the EU, and customs authorities use the document for statistics and to control exports.
What is a customs export and import declaration?
A customs declaration is an official document that lists and gives details of goods that are passing a customs border, being imported or exported.
What is the purpose of customs clearance?
Customs clearance is necessary for imported or exported goods. You must clear the goods through customs import before selling or using them. Customs clearance requires you to submit an import declaration and to pay fees for customs duties, VAT, and other applicable taxes before your goods can be released.
What is the origin of a product?
The origin of a product is the country of manufacture, production or growth, where the article or product was originally produced.
How do you prove the origin of goods?
You can submit a declaration of origin, also known as an invoice declaration or statement of origin, on a document with enough detail to identify the goods’ origin.
Why is the origin of goods important?
Knowing the origin of your products will determine whether a product and the HS code are subject to the additional trade remedy duties related to the product and manufacturing country.
What is trade compliance?
Trade compliance defines the terms, rules and conditions for all trade between two or more countries, including classification, trade risk management, and duty or tax payments. Different trade agreements between other countries also affect trade compliance.
What is a customs audit?
A customs audit is the review of your financial and business records. It verifies the business’s correct usage and compliance with the relevant legislation and requirements.
What does dual use mean?
Dual-use goods are items that can be used both for civilian and military applications. They cover a wide range of products and technologies. They are heavily regulated as they can initially be classified for civilian use and then be adapted for military applications or even used for terrorism.
What is export control?
Export control is legislation that regulates the export of goods, software and technology. Items that can potentially be used for purposes other than the intention/interest of the exporting country, e.g. in a harmful way, are subject to export control. Some examples are arms, goods with military potential, cryptography, currency, precious stones or metals, endangered animals and national artifacts.
Why KGH
Vast knowledge
Customs is a multi-faceted area. We unite 50 years of experience with specialist expertise in all relevant areas.
A comprehensive service portfolio
In addition to a vast range of consulting services, we also provide digital solutions and customs clearance services globally.
A global network of expertise
We can support you globally as part of Maersk Customs Services, combining one interface and local know-how.
We are shaping future legislation
KGH is a member of several forums where new legislation is created, giving us unique insight that can benefit our customers.
Supporting both the public and private sector
Working with international corporations and government worldwide broadens our perspective and our ability to help.
