Client: Radwell International
10% increase in international sales due to clarity on import duty and VAT for customers.
Radwell International MRO, Automation Supply & Repair – Radwell.co.uk
Radwell International stocks and sells new and surplus industrial automation, MRO, pneumatic, motion, electronic, hydraulic, HVAC and electrical control equipment for plant floor and facility maintenance machinery. They also have full component level Repair capabilities for all industrial electronic and electrical equipment. They have offices, warehouses and repair facilities in the UK, EU and USA and supply customers all over the world. They also source parts and components globally that are imported to the UK for quality control before being re-exported to the customer. They have authorisation from HMRC for Inward Processing Relief but are not registered for VAT outside of the UK. Customers are able to order direct from Radwell’s website or via eBay.
Although Radwell hold some stock in Germany it is often quicker to supply EU customers from the UK warehouse. However, if the goods are shipped under DAP Incoterms (Delivered at Place), the customer has to pay import VAT and although they can reclaim it they complain. If Radwell were to deliver DDP they would be liable for the import VAT which they currently have no way of recouping which would make a serious indent in their margins. Other questions that needed to be resolved included drop-shipping and how to reduce the incidence of eBay customers refusing orders when they learned they needed to pay import VAT.
The Intertrade Services Groups spent two days with the team at Radwell working through all the different sales variables and the issues that were affecting customer satisfaction and Radwell’s operations. A comprehensive report was supplied outlining the options open to Radwell to solve the problems and recommendations about how to best implement them. This included how they could make more effective use of their Inward Processing authorisation and how to satisfy customer’s demand for CE certificates for second-hand products.
The clarity you’ve provided about our operations and how we can simplify things is extremely useful, many thanks.
C. Capewell
European Head of Logistics