How a CN code change saved a company 12,430 PLN in March

Expensive habit of using the old code

A client from the mechanical industry had been importing components from Asia since January 2022. They used a CN code that imposed a 4.7% customs duty on every invoice. No one questioned this because the system accepted the declarations, and the goods crossed the border without stops. This is a classic trap: the lack of clearance problems does not mean you are paying what you should. In February 2024, we checked the last 11 customs declarations of this company and noticed that the product description in English suggested a different category than the one entered in field 33 of the SAD document.

The problem was treating machine parts too generally as finished mechanical devices. In international transport, the devil is in the technical details. For 684 days, the company lost margins because no one took the trouble to look deeper into the customs tariff. We check the paragraphs, you haul the cargo – that's the principle we adopted for this audit and we quickly found the loophole that allowed keeping money in the entrepreneur's pocket.

The average value of one container for this client is 43,280 PLN. At a 4.7% rate, the duty was 2,034 PLN. After our intervention, this amount dropped to zero. This isn't magic, just diligent reading of the explanatory notes to the customs tariff, which most agencies don't touch unless there is an audit. We prefer to act before the authority knocks on the door.

The lack of clearance problems does not mean you are paying what you should. Often, it just means you are overpaying in silence.

Where was the error in the documentation?

We thoroughly analyzed 47 technical data sheets of the products imported by the client. It turned out that these elements, described as 'bearing housings', actually met the criteria for a different tariff subheading. The difference in the interpretation of the regulations was subtle. It was about whether the product was a general-purpose part or a dedicated component for a specific type of engine. Facts and numbers matter, and they spoke clearly: 0% instead of the previous 4.7%.

During the verification of documents, it came to light that the supplier from China was using an old CN code from 2019, which became outdated in Europe after changes in regulations in 2021. The Polish importer reflexively copied this data into their declarations in Szczecin. This is a common mistake – relying on the exporter's knowledge, who doesn't necessarily know the specifics of the Polish and EU customs system. We checked these discrepancies in exactly 2h 14min during the first analysis.

In logistics, there is no room for fluff. Either you have codes matched to the actual state of the goods, or you count losses. In this case, it was enough to move the goods to the precision components section. The customs office required us to provide technical drawings on a 1:5 scale, which we did within 3 business days, closing the topic of interpretive doubts once and for all.

Recovering 12,430 PLN in 19 days

The procedure for correction and obtaining a refund of overpaid customs took exactly 19 business days from the moment of submitting the full set of documents. We prepared corrections for 14 transports that arrived at the hub in March 2024. The Customs Office in Szczecin accepted our arguments without additional requests for explanations. The effect was immediate: a refund to the company account in the amount of 12,430 PLN for March alone. That is a specific result seen in the monthly balance.

Many business owners are afraid to correct old declarations, thinking they will draw a tax audit upon themselves. This is a myth. If you have evidence in the form of technical documentation, correction is your right. At Sloenka Logistic GR, we don't promise miracles; we show real paths to savings. This specific client recovered not only the money for March, but we started the application process for a refund for the previous year, which could bring another 84,300 PLN.

When we showed the business owner the calculations, he was surprised that no one had noticed such a simple thing before. This shows how important a fresh look at routine transport activities is. Without the fluff – we simply did our job, checking every paragraph, while they could focus on shipping goods to their recipients in Germany and Scandinavia.

How to check your codes without risk?

It is worth reviewing your 5 most frequently used CN codes every 8-9 months. Regulations change more often than industry media headlines suggest. If your customs rate is more than 3.2%, there is a high probability that it can be optimized. We do this daily in Szczecin. We don't look for holes where there aren't any, but we check if the system isn't taking more from you than it must.

To avoid slip-ups in the future, we introduced a rule of two-stage verification of purchase invoices for the client before shipping goods from the port of departure. Thanks to this, we save time at the clearance stage in Poland. The average container downtime at the terminal has been shortened by 4.65 hours because the documents are now 'clean' and do not raise customs' doubts. This is another saving not seen on the customs invoice, but visible in the operational costs of logistics.

Remember that the office has 3 years to audit your declarations. If you don't find an error in your favor, they might find one to your disadvantage and charge penalties with interest. Better to be one step ahead of them. Specifics instead of promises – that's our method for an importer's peace of mind. All it takes is one call to +48 91 462 44 55 for us to peek at your papers.

Summarizing March 2024: 14 clearances, 0 errors after correction, 12,430 PLN savings. These are facts that speak for themselves. We don't need complicated presentations for this, an extract from the client's account and approved customs documents are enough. If you want us to check your codes, prepare the last 3 import invoices and let us know.

The authority has 3 years for an audit. If you don't find an error in your favor, they may find one to your disadvantage.