Improving compliancy

In view of the increasing number of free trade agreements around the world, it would be easy for companies to think that customs duties are a thing of the past, and that achieving the optimal total ‘landed costs’ is simply a matter of sourcing goods in a low-cost country and paying the freight costs involved in getting them delivered. But nothing could be further from the truth. MIC’s Origin Calculation System (OCS) helps to demonstrate the origin of goods and hence to improve compliancy.

Every free trade agreement brings with it a complex, product-specific set of rules which must be complied with in order to qualify for a reduced import tariff. It is the importer’s responsibility to be able to demonstrate that each claim relating to any preferential treatment based on the origin complies with all the relevant rules and regulations. Failure to gather compulsory information or to perform the required calculations, and failure to document and archive details of every step for a period of five years, can and will result in the full (backdated) repayment of duties, plus fines.

MIC OCS provides tools for soliciting and storing origin data from suppliers in order to then calculate the origin of products manufactured abroad. The system can also store and process rules of origin for an unlimited number of unique free trade agreements. In addition MIC OCS makes it easier to track origin requests through various options, including a web interface for suppliers.