Issue:
A joint venture automotive manufacturer was contemplating certain business scenarios involving the utilization of a customs bonded warehouse and/or a Customs Free Zone as an ASEAN hub for part sourcing from local and overseas vendors, as well as for manufacturing and distributing the goods in Thailand and other ASEAN countries. The client’s aims were to minimize potential duty and tax, expedite the customs clearance process, and effectively manage inventory control.
Our solution:
We gathered facts on each contemplated business scenario and provided an analysis of their duty and VAT implications to determine which scenario allowed the client to enjoy maximum operational cost reduction. We also identified the relevant customs regulations and requirements with which the client must comply under these business scenarios, and finally introduced alternative business models for their consideration.
Result:
The client has a better understanding and awareness of all of the risks involved in each business scenario, allowing the client to select the optimal business model which ensures smooth supply chain operation with reduced cost and saved time.