Customer Need/Problem

A Chinese manufacturer of high end industrial Solar Modules, exports approximately 1,500 TEU annually from China to Europe.  Goods are then stored as bonded goods until time of actual sales, when they are then custom cleared and delivered to the end receiver.

Until beginning of 2013 the import duties that had to be paid for these types of Solar Modules manufactured in China, was 0%.  However on January 6th 2013 European Union announced that they were considering an ‘Anti-Dumping’ investigation on Solar Modules imported into the EU. It was generally expected that an import duty will be heavy.

Service Solution:

OOCL Logistics saw this as an opportunity for our customer to out-perform their competitors if proper logistics arrangements and VAT administration were in place.  After studying the case with the authorities, OOCL Logistics proposed a package of services which involves bringing forward increased numbers of shipments of the Solar Modules and putting in place a VAT administration program to assist the customer in minimising the total cost of duties while improving cash flow.

Customer Benefits:

The customer has saved well over 10% in duties giving them an advantage over their competitors for the 2nd half of 2013 and 1st half of 2014, while ensuring maximum stock is available to maintain business in Europe.