Synopsis
A large solar energy company with manufacturing operations in India was able to reduce its total customs duty spend in the Philippines by 10% through the use of the ASEAN-India Free Trade Agreement.
Customer Overview
- Company: A large manufacturer of solar energy products
- Vertical: Industrial
- Services: GTCM FAMS
- Volume: Approximately 10 containers of products classified under 40 different HS codes
Challenges
- Need to verify product classifications of various products to validate compliance with “change in tariff heading” FTA criteria
- Obtaining the required preferential Certificate of Origin (Form AI)
- Additional documentation may impact timely shipment clearance at origin and destination
M&H Haulage Group Solutions
- Review classification of all products in shipment for FTA purposes
- Review HS codes of raw materials (through Bill of Materials), and ascertain that the finished product underwent a “change in tariff heading”
- Consultation with customs at origin and destination to develop procedures and controls to manage compliance
Benefits
- Duty savings benefit averaging 10%
- Smoother and hassle-free shipment clearance despite additional documentation requirements
