A leading designer and marketer of an extensive range of women’s and men’s fashion apparel and accessories ranging from casual to dressy.
Customs duty paid for importing raw materials that are used for producing products for export can be recovered from customs. However in order to do that the company has to provide export sales invoices and matching receipts of imported raw materials or finished goods. In their existing systems, there was no ability to map the sales invoices to receipts and hence the company lost on collecting Duty Drawback funds.
Visionet Systems was asked to develop a system that links the invoices of export sales to receipts of raw materials that are imported and used in the manufacturing of the product. Visionet was selected based on its:
- In-depth experience with apparel specific ERP
- Knowledge of the apparel industry supply chain process
- Technical expertise
Visionet worked with a team from the client to review the compliance requirements from US Customs and develop the functional and technical specifications required to meet the business needs. Visionet developed the custom software application and integrated it with the ERP system to produce automated linking of invoices and receipts. In addition the software also provides manual override facilities.
With the optimized Duty Drawback System, the users get the speed as well as control and flexibility needed to bring about tremendous savings to the company by effectively collecting Duty Drawback funds:
- Financial loss of over $300,000 annually was averted
ROI: 6 month payback on the investment