TVS Supply Chain Solutions now provides customs warehousing solutions to non EU import challenges
TVS SCS has announced that it has received HMRC authorisation for Type “A“ Customs Warehousing. This has significantly strengthened its Vendor Managed Inventory value proposition to OEMs by addressing the challenges associated with Non EU imports providing significant cash flow benefits and mitigating any risks associated with inventory liability.
TVS SCS has offered bespoke Vendor Managed Inventory Solutions for over a decade to UK OEMs in the Automotive & Industrial Sectors, through their International supply base managing supplies from Non EU countries.
Across all sectors, UK OEMs are facing challenges with Non EU imports from their suppliers who are not established as an entity or VAT registered in the UK. Although the imported stock is maintained and called off as required from a 3rd Party UK warehouse, the following challenges remain;
OEMs taking the title of stock at the time of customs clearance at the UK port.
Taking on inventory liability for a 4-6 week safety stock on their books in accordance with legislation.
Incurring payment of 20 % VAT on the total value of the goods in addition to the duty as well as providing associated bank guarantees.
The solutions TVS SCS will provide
TVS SCS can now provide solutions to these challenges through their Type A Customs Warehousing Service by helping the OEMS to defer the VAT, the applicable duties, the title of goods and therefore the declaration of inventory liability in the books, until the stock is called off from TVS SCS warehouse. This provides significant cash flow benefits and mitigates any risks associated with inventory liability.
In addition, TVS SCS have been authorised for Customs Freight Simplified Procedure (CFSP) which enables them to deal electronically with HMRC, allowing faster processing of international trade transactions .
As a next step, TVS SCS has also planned for adoption of Union Customs Code (UCC) and to achieve the Authorised Economic Operator (AEO) status, which is an internationally recognised quality mark indicating that TVS SCS’ role in the international supply chain is secure.
TVS SCS is the European arm of TVS Logistics, offering complete end-to-end supply chain management of spare parts and components, to support client Aftermarket and Production operations across multiple sectors including; Automotive, Industrial, Defence, Utility and Beverage.
TVS Supply Chain Solutions is part of the 105 year old TVS Group, which has a group turnover of $7 billion and 30,000+ employees with a global presence.
TVS is exhibiting at Multimodal on stand 500