Automotive Origin | 2024 ZIM Final

Prevented tariff escalations for machinery imports.

H Company

2021

Automotive

H Company faced tariff risks from inadequate origin documentation. Proactive reviews and supplier audits ensured compliance, preventing losses and avoiding delays.

Analysis

Documentation gaps raised customs concerns about origin compliance.

Our analysis showed that discrepancies in supplier-provided origin documentation caused repeated customs inquiries. There was no system to verify documents before submission. Additionally, the absence of a robust supplier compliance process led to recurring issues.

Challenge

Missing or inadequate origin documentation created tariff risks and shipment delays.

H Company lacked proper documentation to support origin claims for machinery imports. Customs authorities raised concerns, threatening to impose higher tariff rates. Shipment delays increased operational costs and jeopardized production timelines.

Solution

Proactive reviews and supplier audits resolved issues and ensured compliance.

A supplier audit program was introduced to verify the accuracy of origin documentation. Proactive documentation reviews were implemented for all shipments, reducing errors and addressing discrepancies before customs submission. Training sessions for suppliers improved compliance.

Maintance

Proactive reviews and supplier audits resolved issues and ensured compliance.

Regular audits of supplier performance and documentation reviews were scheduled to maintain compliance. Automated alerts were introduced to flag potential issues before submission. Over the next two years, tariff-related disputes were eliminated, and shipment delays were reduced significantly, ensuring smooth operations.