Make substantial savings by eliminating excess duty payments with DutyTracker
If your business imports raw materials, ingredients or finished goods from outside the EU, you’ll know that duty has to be paid on these imports. IPR and PCC are special customs procedures (now under UCC – “Union Customs Code”) that can help you avoid the need to pay import duty and where applicable, VAT on duty, but both regimes require close tracking and administration.
DutyTracker© is a solution that allows you automate this tracking and reporting process, make potentially major savings on material purchase costs and help you remain complaint with EU customs regulations.
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Make big savings
By deploying DutyTracker©, your business can make real savings in material purchase costs by avoiding unnecessary duty payments. With rates up to 22% of the CIF (Cost, Insurance & Freight) value of purchased materials, these savings can add up very quickly every year. You can also examine historical movements retrospectively, ensuring even greater savings are possible. Our analysis tells us that client payback on DutyTracker© is typically within 6-12 months of implementation.
Stay compliant and avoid penalties
As the tracking and reporting process will be automated, this ensures a level of built-in compliance. By law, you need to keep sufficient details for reporting to the relevant customs authorities and it is your responsibility to manage this. Duty Tracker© ensures you stay compliant with EU customs regulations and this will help you avoid un-necessary penalties. We are continually upgrading Duty Tracker to handle regional and international regulatory requirements.
Integrate seamlessly with SAP
DutyTracker© has been designed with best-in-class enterprise planning in mind and works on the same underlying technology as SAP and is developed using ABAP and Netweaver, ensuring consistency with SAP. All your relevant SAP transactions are captured and the solution has been designed to use actual material usage quantities from production orders. And with the same reporting functionality and screens as SAP, there is little education and training required so users are generally up-and-running very quickly.
Our solution can potentially help your business save substantial costs by automatically avoiding payments of certain duty types. Talk to us today and find out what we can do for your business
SCHWEPPES CASE STUDY – DUTY TRACKER
DutyTracker from Minola saves blue-chip customer
in the region of €1million per year
The Client
Orangina Schweppes International is a market-leading soft drinks manufacturer and retailer based in Amsterdam. Their concentrate-manufacturing plants and finished-beverage packing plants can be found right across Europe. Over a long relationship, we have worked closely with their IT units internationally in implementing and extending SAP for the group.
The Challenge
Having specialist knowledge of this industry sector, we were aware of the potential savings that could be achieved through the application of customs special procedure PCC (Processing Under Customs Control). We brought this to our customer and after going through a consultation and verification process, we established that with the right technology solution in place, there was potentially over €1 million to be saved per annum. Our solution DutyTracker could deliver the outcome required.
The Work
By working closely with their teams across various functions (IT, Finance, Supply chain, Technical) and deploying our own expertise in this area, we presented a meticulous project plan. It detailed how we would tackle several issues from licensing and compliance to system-mapping and implementation.
The initial phase involved detailed work on the licence application including the completion of BTI (Binding Tariff Information) applications. This included organising a technical examination of the product to insure complete compliance with PCC rules. We also took the step of analysing the relevant production process and product formula to determine qualification for PCC before applying for the relevant licence from the Dutch authorities.
In software development terms, DutyTracker was developed using SAP’s ABAP development language, and runs on the enterprise’s SAP server. We update the solution daily at non-peak times and a complete audit trail on each batch of PCC Material received is provided with EDI update files sent to customs every month.
Training played a crucial role in the project and we also conducted extensive user acceptance testing. A comprehensive training offering encompassed modules on DutyTracker itself, customs process training, explanation of BTIs and Import / Export clearance process training for the relevant stakeholders. This project delivered a detailed solution to a real business problem and took one year to roll-out.
The Results
- Substantial savings – our client has estimated that DutyTracker has helped them make savings of more than €1 million per year since implementation.
- The project payback time was less than six months after go-live.
- In retrospective terms, all duties paid from date of application were claimed back.
- The pan-European tracking requirements from Dutch customs were met completely.
Talk to us today and find out what we can do for your business