New Commercial Vehicle Business Importing from USA
£75k Saved in Vehicle Import Duties
'A' was a company that was a business start up and wanted to import commercial pick up trucks from the USA. The business model was to import 2 or 3 vehicles at a time to be held at the company's Manchester showroom. Customers would then place and order and take delivery 3 weeks later once modifications had taken place. The vehicles were worth circa £30K each and the company had ordered 2 x shipments of 3 vehicles at set up.
By implementing a Customs Warehouse, the company saved the cash flow on the initial 6 vehicle import of the Customs Duty (22%) & VAT (17 ½%) until a customer placed an order. Even then the VAT and duty on a single vehicle was only due.
Cash flow savings of circa £75K on the 6 vehicles were achieved which significantly assisted the set up of the business.