Client: Peter Jones (ILG) Ltd

Profile:

Peter Jones (ILG) Ltd is a family run business located in Abergavenny. For over 50 years they have combined traditional skills with modern materials and technology to manufacture tough, durable products for ever more demanding environments. Their offering includes leather radio cases and the Klick Fast carrying system utilized by many police forces in the UK.

Problem:

Peter Jones import leather from Spain, Italy and the Netherlands through agents in the UK to manufacture their high-quality products. Until the end of 2020 this was a straightforward process but from January 2021 it became more complicated and neither Peter Jones’ EU suppliers, nor their UK agents seemed to understand the new customs requirements. As a result, whilst the goods were delivered, the paperwork that Peter Jones received made no sense and the Directors were concerned that they weren’t compliant with the new regulations. Their two prime concerns were import VAT and customs duty as failure to account for and pay these on time could have serious financial repercussions for the business.

Solution:

Following an in-depth virtual meeting, Peter Jones emailed all the documents they’d received relating to the imports they’d made so far in 2021. The International Trade Consultancy analysed all the documents and wrote a report explaining the process by which each import had arrived in the UK and which suppliers were involved. Commodity codes were checked to confirm the correct import duty was paid and that VAT had been calculated correctly. As it turned out, one of the freight forwarders had accidentally entered the quantity figure in to the value box on the C88 which meant that the VAT was significantly undervalued. Peter Jones were able to contact HMRC to correct the problem and avoid the fines that would have been payable if they hadn’t been proactive. Scrutiny of the Incoterms used revealed that, although the terms of their contract stated that the supplier was responsible for insuring the goods to the point of delivery, this was not being done meaning that Peter Jones would have been very out of pocket if something had gone wrong. Additionally, Peter Jones were paying for both sets of customs declarations, and in one case, the total cost of delivery when it should have been shared with the supplier. Based on our investigation, Peter Jones received several credit notes from their suppliers and have negotiated much better terms regarding delivery.