Polish Export: How to Manage Customs Risk
For companies operating in international markets, one of the priorities should be managing customs risk. – It allows for the safe use of customs facilitation measures and conducting business in a way that protects against potential legal, financial sanctions, or possible inspections by authorized authorities – says Joanna Porath, the owner of the customs agency AC Porath.
Experts from the Polish Chamber of Commerce estimate that exports in 2024 may increase to 346.3 billion EUR, i.e., by 3.6%, and in 2025, 383.8 billion EUR, which could be 10.8% higher than the previous year. For companies operating in this area, secure supply chains based on AEO-certified businesses, which protect against risks and disruptions, are becoming a priority.
– Since the source of customs risk can be external, such as inflation, price increases, geopolitical disruptions, new laws, or internal, such as staff changes in the company or financial liquidity, companies must be able to identify these threats and respond to them promptly – explains Joanna Porath.
Managing Customs Risk is Essential
Managing customs risk applies to all companies involved in the export/import business with countries outside the European Union, such as Switzerland, Norway, the United Kingdom, the United States, China, and the entire Far East. Statistics show that customs risk is most often related to improper classification of goods to obtain preferential tariff treatment. It also concerns irregularities in declaring the origin of goods, which have financial consequences, affecting customs duties, excise tax, VAT rates, and circumventing bans and restrictions imposed on goods from certain countries.
– Customs risk is also linked to improper valuation of goods, such as undervaluing customs value or overvaluing goods in export to fraudulently obtain VAT, intellectual property violations, such as dealing in pirated or counterfeit goods, trading in strategic goods without permits, customs frauds, such as those related to anti-dumping or countervailing duties, product safety, such as CE marking – explains Joanna Porath.
Benefits of Managing Customs Risk
In companies dealing with foreign trade, customs risk management is introduced in order to:
- Properly manage AEO certification
- Obtain and maintain customs facilitation measures
- Obtain permits for simplified customs declarations and permission to apply procedures on-site
- Obtain deferred payment deadlines for customs and tax obligations
- Regulate contacts with other contractors and customs authorities
- Care for the company’s image
- Improve work organization, ensure economic and legal stability, facilitate cooperation with entities that require AEO certification from subcontractors.
The benefits of managing risk in a company primarily include protection against the loss of customs facilitation, dishonest contractors, as well as protection of the company’s image, financial and legal security, and improving internal control processes.
– Customs risk management in a company must be implemented in all areas and positions related directly or indirectly to the application of regulations governing foreign trade. This primarily concerns accounting, customs warehouses, the customs office, places of loading goods intended for customs procedures, storage of customs goods, production and packaging, or places where data is collected and processed – adds Joanna Porath.
