Switzerland

New Horizons in the Movement of Goods 

Heroimage Customs and Trade

 

The service line of KPMG's dedicated Customs & Trade professionals covers a wide range of knowledge in all aspects of international trade for Swiss based entities, with trading activities with the EU and other regions i.e. EMEA-region and Americas. It also contains implemented business-processes and customs support for organizations based in foreign customs regions importing into Switzerland or the EU to furnish trade or production activities. Whilst doing so, our core competences are strongly focused on improving supply-chain and seeking opportunities to further increase margins through such topics i.e. Free Trade Agreements, customs valuation and tariff-evaluation benefiting Swiss businesses.

Customs Review: Transparent and Efficient
As experience shows, companies who lose track of customs management even for a short period end up unnecessarily binding resources within the supply chain and often risk negative effects on their performance effecting their P&L. As Customs duties demonstrate a significant cost-base within the value chain, the costs for sourcing of raw materials and distribution of finished products may significantly increase, leading to an unnecessary competitive disadvantage.

KPMG supports it’s clients facing challenges by international trade restrictions within the framework of our specially designed Customs Review. Customized to evaluate all aspects of customs and excise tax processes within various businesses, such a customs review aims at assisting companies to determine and elaborate optimization potential quickly and effectively.

In areas and regions, where customs duties are levied, the execution of a customs review conducted by KPMG may prove to play an active role in increasing the efficiency of customs management within operations. Additionally elaborating the possibilities of customs authorizations, simplified procedures, permits and Free Trade Agreements (FTA) are covered whilst investigating such crucial topics as Exportcontrol and compliance procedures wrapping up the full scope of a customs review.

 
Transfer Pricing & Indirect Tax – The underrated interfaces
It is becoming apparent that customs authorities are demonstrating a growing interest in supposedly unassociated customs domains. This is reflected by the increasing use of transfer pricing comparisons by the authorities before determination of the indicated customs value. Subsequently, customs authorities have increased audit-scrutiny relating to internal transfer pricing documentation. Complex interdependencies also exist between customs duties and VAT rates corresponding intra-community supplies of goods within the EU. The tight link of customs security regulations in the supply chain underline the necessity to subject business processes also to the aspect of the risk & security analysis i.e. Authorized Economic Operator -  AEO. If a Swiss company elaborates the efficiency of their international supply chain it is imperative to include a distinctive customs management within the evaluation process.

 

Customs & Trade – A Subject for Audits?
The scope of an audit usually includes an analysis of business processes that should ideally incorporate cross-boarder trade (i.e. customs). Companies supposedly having customs processes under control without verification, failing to apply the directives actively in their business plan are strongly exposed to the risk of penalties and a withdrawal of customs permits and often leading to litigation. These inconveniences may be occurred by a lack of knowledge or insufficient compliance manuals. Potential sanctions imposed by the customs authorities should not be underestimated.

Andreas Russi

Andreas Russi

Partner, Indirect Tax

+41 58 249 28 71