Previous to Customs Radar, the company used quite a manual process to identify import refund opportunities.
The daily tasks included collection of necessary documentation and constant communication with the company’s logistics provider to acquire the Harmonised Commodity codes to pass on to the company’s executive in China. The executive then reviewed the codes to ensure they were suitable for the product specifications and then confirmed them back to their logistics provider, who then prepared and processed all the necessary documentation.
Afterwards, when the customs confirmation and invoices arrived, the same person would go through to check customs duty hadn’t been paid where it shouldn’t have.
“Until now, we’ve done this for every transaction. For an organisation that seeks efficiency, it’s not ideal,” explains the company’s financial controller.
Customs Radar is a tool for the customer to check their historical import transactions, it’s a quick way for them to get access to a practical, useful report.
“It gives us the ability to look at a fairly large data set and see over a period of time what went right and what went wrong. So for us, it’s a good checking tool of our processes, and a way for us to make sure we aren’t leaving money on the table. It’s very useful to the team.”
The customer needed a solution that delivered a clean and concise dashboard that summarised huge amounts of import data and told them what they needed to know.
“Customs Radar did that for us,” confirms the company’s financial controller.
“We could look at the report and see the potential duty refunds from Free Trade Agreements (FTAs) and then drill down into the details and also download the raw data.
What’s really useful is how the report summarises the information we need. We can then do a deep dive to see where things are going wrong and use that to improve, and obviously claim our money back from customs.”
When the customer used Customs Radar originally, they were able to identify around AUD $75K in potential duty refunds across FTAs. Then, when the Deloitte Tax team looked at their import history, they identified a figure greater than $100K.
“A lot of that additional value was from speculative Tariff Concession Orders (TCOs) that Deloitte had realised on top of the FTAs that the tool had identified. They were able to identify that value because they use experienced people, rather than just a system alone.
We have already claimed over $79K from customs through Deloitte and we’ve got more to go as a separate batch. I think we will easily be able to claim back over $100K.”
In the past, the customer had no choice but to deal with raw data dumps, with which they were unable to meaningfully understand or even work with.
“Customs Radar is so much more user friendly. If I was to give my CEO access to the report online, he would be able to easily understand the dashboards and get all the information he needs from it, and the rest of the team can get the raw data and analyse the data in detail,”
For companies like ours who have internal processes around this, $1,499 means I can run this report once a year to ensure that all our processes are running the way we think they are. And especially with the TCO analysis, it can make a big difference.”