European Union membership is changing how suppliers deal internally with customs paperwork and taxes.
Joining the EU last May ended the requirement in central Europe to file customs declarations on goods shipped within the common market.
In theory, this procedure was simply transferred to Intrastat, the statistical arm of the European Union.
From an operational perspective, the paperwork could be directly incorporated into enterprise management software.
But making the change hasn’t been quite that easy.
Czech officials still want information on the cost of transporting goods to the Czech border, a detail not submitted to Intrastat said Michel Janssen, head of Federal-Mogul’s factory in Kostelec nad Orlic.
A benefit of the change is that closer cooperation with other tax offices in Europe is resulting in local tax authorities that are
more skilled and inquisitive, PricewaterhouseCoopers tax specialist Petra Safrikova said.
Ladislav Glogar, head of Visteon’s operations in the Czech Republic and Slovakia, agrees.
He says: “They are looking deeply into the transaction structure, but this is due to increased overall coordination and is not specifically EU related.”