Are you overlooking a hidden financial asset in your customs data that could boost your company’s cash flow and reduce compliance risk?

As a Finance Leader, you may already be aware of the importance of optimising operational efficiency and leveraging financial opportunities within your business. However, there might be a hidden financial asset sitting within your customs data: overpaid customs duties. Many companies miss the chance to claim preferential duty rates on imports due to a lack of awareness or procedural lapses. From our analysis of HMRC’s Trade Data annual reports, in 2023 UK businesses missed out on up to £1.5b of preferential duty claims at the time of import. Recovering these overpayments can improve cash flow, reduce compliance risk, and drive additional value from your supply chain operations.

Understanding the Opportunity in Free Trade Agreement Claims

At the core of this opportunity lie Free Trade Agreements (FTAs) that the UK holds with various countries. Free Trade Agreements allow businesses to claim reduced customs duty rates on specific imports. Despite the potential benefits, many organisations fail to claim these preferential rates, leading to significant overpayments. The good news? You can reclaim these customs duties for up to three years in arrears. The challenging part, however, is the recovery process, which requires both expertise and resources.

Why Overpayments Happen and How We Can Help

Common issues causing missed FTA claims include:

  1. Lack of Awareness: Importers may not be aware that a preferential rate exists.
  2. Supplier Documentation: Suppliers may not provide the necessary paperwork to qualify goods for reduced duties.
  3. Broker Instructions: Customs agents may not be informed to apply the lower rate during importation.
  4. Broker Errors: Even when instructed, brokers might overlook essential data points on the customs declaration.

Our consultancy specialises in identifying and reclaiming these missed opportunities. With over 100 years of combined experience, we have helped numerous businesses recover significant sums in overpaid duties. Our proprietary analytics software, CAT360, can pinpoint missed Free Trade Agreement claims in minutes by analysing data directly from HMRC. This quick, data-driven approach allows us to determine exactly how much your business could potentially reclaim.

Data-Driven Insights and Our Analytics Solution

Our analytics tool, CAT360, uses a straightforward algorithm to verify whether the commodities imported from Free Trade Agreement countries were eligible for a lower duty rate at the time of import. It then assesses if you claimed these benefits and whether the goods met the necessary conditions. The software provides a detailed report showing the exact products, countries, and suppliers involved, giving you a clear view of where claims can be made.

Additionally, our service offers a framework for managing the reclaim process, from initial data extraction to claim submission and tracking. This includes building confidence levels based on successful claims in similar scenarios, further strengthening the legitimacy of each claim.

lindsay customs specialist at barbourne brook

Lindsey Roberts, Senior Customs Duty Consultant at Barbourne Brook, comments:

“FTA reclaims aren’t just about immediate savings; they offer a sustainable way to improve cash flow and reduce duty costs over time. It’s about creating ongoing value that strengthens the business’s financial position.” 

The Complexity of Reclaiming Overpaid Duties

Reclaiming overpaid customs duties is a complex and time-intensive process involving:

  1. Segmenting Claims: Breaking down claims by the source of error.
  2. Evidence Gathering: Verifying that goods qualify, often requiring back-and-forth with suppliers.
  3. Application Completion: Completing detailed application forms and linking evidence to each line item.
  4. Addressing HMRC Inquiries: Handling requests for further information as HMRC reviews your claim.

Our experienced team manages this entire process on a contingent basis, ensuring you only pay for successful claims. This zero-risk approach allows you to focus on your core operations while we handle the intricacies of customs duty reclaims.

Proven Results and Long-Term Value

Over recent years, we have recovered substantial sums for our clients, enhancing their financial performance and compliance standards. Our tried-and-tested methodology ensures your claims are submitted accurately and on time, minimising the risk of claims falling outside statutory deadlines. By working with us, you benefit from a structured, reliable reclaim process that maximises value and minimises compliance risks.

In conclusion, uncovering hidden cash within your customs data could represent a significant financial opportunity for your business. By capitalising on missed FTA claims, you can reduce operational costs, improve cash flow, and enhance overall financial efficiency. Our data-driven approach and expertise in customs consultancy make this process straightforward, allowing you to unlock potential reclaims without upfront investment.

If you’re ready to explore this opportunity, we invite you to connect with our team to assess your potential reclaims and start optimising your customs duty recovery today.