United States

Post-Deal Trade Transactions

Jun 28, 2017
From the KPMG TaxWatch

Planning for post-deal trade services: corporate mergers, acquisitions, divestitures, spin-offs, and even internal restructurings can have a substantial impact on the supply chain. Companies should consider aligning trade-related areas affecting their global supply chain.

Substantial supply chain repercussions—from manufacturing disruptions to late customer shipments to daily work flow interruptions—can occur when a company is not prepared prior to executing a corporate deal or restructuring. But advance planning for customs and trade compliance considerations can help prevent such effects and help to maintain business viability from Day One of the new organization.

This may include a review of: operations (import/export registrations), Trade (Local Signatories or physical presence; Letters of Authorization), Tax (VAT, and Goods and Services, Transfer Pricing), Finance (Accounts), Systems (Customs controls and ERP/Trade Management Systems), Logistics (Broker management and registration).

A Sample “Day One” checklist may include:

  • Obtain new importer or export record numbers
  • Register for VAT
  • Obtain import security (i.e., customs bond) and banking information
  • Revise entry documents (i.e., certificates of origin)
  • Update or obtain export or import licenses
  • Identify/designate empowered officials
  • Revise or initiate agreements between brokers, agents, and suppliers
  • Perform organizational mapping

Watch this video to learn what executives should consider when thinking about post-deal trade transactions.