From the 1st January 2021, all businesses that shipped goods between Great Britain and Northern Ireland needed to follow a new set of customs and tax rules which meant significant changes to the way they had previously run their business. This included one of Britain’s much loved, and popular, food retailers, M&S.

How M&S met the challenge of increased regulation from BREXIT

M&S addressed the challenge head on by implementing TariffTel to manage all food classification. TariffTel provided the streamlined, accurate and quick approach to classification that was needed at this time. Working together, we ensured M&S’s much- loved food and drinks products continued to cross borders smoothly through BREXIT and that consumers were unaffected.

Success was down to TariffTel’s focus on prioritising compliance and accuracy in the customs classification process. Understanding food classification is complex and specialised but having the right classification solution, backed by an expert classification team, means the challenges can be overcome. Complexities often come down to variations in a product’s composition which can shift a classification within a Heading or move it across Chapters. Further difficulty comes about when interpreting the tariff between different regions. This can lead to the same product having a different tariff code based on the import region which in turn makes it challenging for businesses to ensure compliance across multiple markets.

More often than not, the sheer volume of information needed to make an accurate classification can be hard to come by. The specific and varied challenges of food classification are discussed in greater detail in this dedicated food classification blog.

M&S further met the challenge of BREXIT by engaging in the process of an AEO application which requires businesses to prove their systems are robust and fully compliant with customs regulations. We’re proud to say that TariffTel was a part of this successful application.

Why TariffTel?

TariffTel has a unique method to classification. Not only does it integrate with a business’ internal systems, it also leverages a business’ suppliers in the classification process allowing them to input key data about products for verification. It captures all the data needed including product characteristics such as sugar and fat content, to enable the correct tariff code to be assigned. As a result, M&S is assured it is paying the correct duty on every product, and there is no under or over-paying which can often happen.

Working collaboratively, TariffTel’s customs experts are able to assist with classifying even the most complex of food and drink products including, for example, a vegan composite ready meal, made primarily of mycoprotein, with only trace elements of vegetables.

The success of implementing TariffTel at M&S

This level of digital transformation provides M&S with a framework for the future. TariffTel not only streamlined classification processes to speed up the time it had previously taken to classify a product (with classification speeds increasing 5 times), but it ensured M&S had the correct tariff code every time, allowing them to gather documentation relating to the code and be compliant.

Shipment delays due to incorrect classification codes were avoided and the team were assured that they were paying the correct duty rates on all products. The new system enabled M&S to adapt and maintain its trading alliances with suppliers and stores across Northern Ireland and deliver the same high-quality service and smooth- running operation it always had.

Elizabeth Davies, TariffTel’s Customs System Manager, says, “This solution was transformative for M&S and ensured they managed the introduction of new BREXIT regulations smoothly, and without disruption to customers. TariffTel’s tariff code accuracy is unbeatable. When high standards of compliance are crucial in your organisation, businesses need a solution that guarantees accuracy.”

To find out more about a tariff code solution that’s right for your business or want to learn how your business could benefit from TariffTel, get in touch with our team.

The post How M&S Food introduced a cost-saving approach to customs controls with TariffTel appeared first on .

We have supported many businesses in expanding into new overseas markets and one of the those businesses is fashion retailer, boohoo Group. In 2022, boohoo Group’s aim was to boost sales in the US and streamline the delivery of its fashion products to their new US distribution centre from the UK.  Our TariffTel system supported them in their new approach to customs classification, prioritising customs compliance and accuracy. The results speak for themselves.

Customs challenges when expanding into new markets

In 2022, boohoo Group’s orders to the US faced a lengthy delivery time of 8 to 10 days and the team used a legacy system to assign tariff codes which relied on traditional, paper-based processes and decentralised data systems.​

Their goal was to ensure the smooth and quick entry of millions of units into the US. Their first challenge was to quickly and accurately classify thousands of SKU’s, a complicated task given they stored only partial product master data. Further difficulty lay with the complexities of the US customs controls which vary significantly to the UK. ​

Boohoo group set out to transform their approach to customs classification with TariffTel.

Why TariffTel?

Boohoo group chose TariffTel as the system provided a centralised approach to assigning US tariff codes, capturing and storing essential product data which is crucial for accurate classification.

The TariffTel team had less than four months to classify thousands of SKU’s from various suppliers.​ TariffTel engaged suppliers for specific information, including size, weight, fabric composition, product images, and supporting documentation.

TariffTel was able to facilitate a level of digital transformation that allowed boohoo group to achieve a more efficient and compliant process in classification.​ The system enabled boohoo group to accurately classify and ship all necessary SKUs to the US from the UK in the four month timeframe. ​

The team achieved a 100% compliance record on 20,000 SKUs, transforming the way US operations and classifications were conducted. The initiative reduced transit times, enabling boohoo group to fulfil demand more precisely in the growing US market.

As a result of the new approach, boohoo group can now trust the 100% accuracy of its product master data, thanks to quality assurance checks and supplier integration. ​This digital transformation now serves as a benchmark for expansion into other overseas markets.​

David James, Group Supply Chain Director at boohoo Group PLC, says of the work, “This solution was transformative for boohoo group, we capture all the data required from suppliers for classification that produces the full 10 digit US HTS code. This innovation has ensured the smooth flow of goods through US Customs and since the distribution centre opened we have had zero shipment delays on products entering the US.”

Find out why compliance matters to boohoo group and other businesses in our blog on on the consequences of misclassification.

TariffTel’s combination of customs data and our unrivalled team expertise create a precision solution for every business prioritising trade efficiency and growth.

If you want to find out more about a tariff code solution that’s right for your business or want to learn how your business could benefit from TariffTel, get in touch with our team.

The post How TariffTel supported boohoo Group’s US expansion appeared first on .