TVS SCS can now provide Customs Warehousing solutions to non-EU import challenges
We are proud to announce that TVS SCS has received HMRC authorisation for Type “A“ Customs Warehousing.
TVS SCS has been offering bespoke Vendor Managed Inventory Solutions for over a decade to UK OEMs in the Automotive & Industrial sectors, through their international supply base managing supplies from non-EU countries. This new authorisation will significantly strengthen our Vendor Managed Inventory value proposition to OEMs, by addressing the challenges associated with non-EU imports.
The challenges faced:
Across all sectors, UK OEMs are facing challenges with non-EU imports from their suppliers who are not established as an entity, or VAT registered in the UK. Although the imported stock is maintained and called off as required from a 3rd party UK warehouse, the following challenges still remain;
OEMs taking the title of stock at the time of customs clearance at the UK port.
Taking on inventory liability for a 4-6 week safety stock on their books in accordance with legislation.
Incurring payment of 20 % VAT on the total value of the goods, in addition to the duty, as well as providing associated bank guarantees.
The solutions that TVS SCS will provide:
TVS SCS can now provide solutions to these challenges through their Type “A” Customs Warehousing Service by helping the OEMS to defer the VAT, the applicable duties, the title of goods and therefore the declaration of inventory liability in the books, until the stock is called off from the TVS SCS warehouse. This provides significant cash flow benefits and mitigates any risks associated with inventory liability.
In addition, TVS SCS have been authorised for Customs Freight Simplified Procedure (CFSP) which enables them to deal electronically with HMRC, allowing faster processing of international trade transactions .
As a next step, TVS SCS has also planned for adoption of Union Customs Code (UCC) and to achieve the Authorised Economic Operator (AEO) status, which is an internationally recognised quality mark indicating that TVS SCS’ role in the international supply chain is secure.
For more information about this, please contact Arun Jayaraman, Strategic Account Director at TVS SCS: [email protected]