Problem:

The client felt that they were paying too much in import duty and VAT but were not in a position to identify how and where the savings/process improvements might come from.

Solution:

VernonRato was contracted to use its cost savings ability to investigate and make recommendations. All the company’s products from single units to full systems were evaluated and it was identified that because the company manufactured the units and systems in the UK, the best way for them to import the goods, and make cost savings, was through IPR (Inward Processing Relief).

Further information was obtained by examining the process from import to re-export, including the system used to document the process. The IPR application was completed and within a month, the company received an IPR number and was fully able to start their cost savings.

Results:

Having the IPR number saved the company over £300,000.00 in import duty costs and £850,000.00 in VAT cash flow in their 1st year alone.