Shortening customs clearance time by 22 hours
We analyzed the transport documentation of a furniture exporter. Thanks to the change of CN codes, goods stopped hit additional inspections.
The company FurnitureNorth from Podlasie sends furniture to the UK and Norway. Their transports stood at the border for far too long, which generated high fines for downtime and stress for drivers. We helped them straighten out the documents so that trucks cross terminals without unnecessary questions.
The challenge
Every second FurnitureNorth transport ended up on the so-called red lane for physical inspection. The average clearance time in July 2024 was 27 hours and 14 minutes. The client paid an average of 430 euros penalty for each day of delay of one car, which with 14 transports a month resulted in significant financial losses.
The main problem was errors in proforma invoices and too general descriptions of goods. Customs officers often interpreted this as an attempt to evade duties or an incorrect value declaration. The company's logistics operated under time pressure and no one had the mind to check if the commodity codes were current at all.
Our approach
For 19 business days, our team from Business Precision analyzed the history of customs declarations from the last 7 months. We reviewed exactly 114 invoices and commodity specifications, looking for flashpoints caught by customs office algorithms. It turned out that CN codes (Combined Nomenclature) were assigned inaccurately by the logistics department.
We conducted a site visit at the production plant near Białystok. We had to see exactly what the furniture fronts were made of and what fittings were used, because this is key for tariffication. Based on this, we prepared a new instruction for issuing export documents.
The solution
We implemented a simple system for describing goods that excludes mistakes when choosing CN codes. We prepared new templates for export documents that are 97.3% compliant with the requirements of British and Norwegian offices. Each furniture element now has a fixed technical description assigned that leaves no doubt for controllers.
Additionally, we trained two FurnitureNorth office employees. We showed them 4 specific details on the invoice that customs officers look at most often. We focused on practice, not on reading thick law books. Now each package has a description that clearly tells the official what is inside and how much it is worth.
Results
Transports stopped hanging at the border for no reason. FurnitureNorth regained delivery continuity and stopped paying thousands of euros in penalties to carriers for each day of standing at the terminal.
Timeline
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June 12, 2024Audit of 114 historical customs declarations and catching incorrect CN codes.
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July 3, 2024Verification of material composition of furniture in the client's production plant.
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July 22, 2024Introduction of new invoice templates and waybills to the system.
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August 14, 2024Final report and confirmation of zero penalties for downtime.
"Frankly, we thought these inspections were just bad luck or the maliciousness of officials. Business Precision showed us errors in our papers. Now drivers report unloading at the customer's on time."