How TariffTel supported boohoo Group’s US expansion

Blog

Entering and succeeding in a new market, especially one where the customs controls vary significantly to the UK, can be challenging. Having the right classification system in place to streamline processes, manage product data and assign accurate tariff codes is crucial if you’re to ensure your products arrive quickly and compliantly at their destination.

We have supported many businesses in expanding into new overseas markets and one of the those businesses is fashion retailer, boohoo Group. In 2022, boohoo Group’s aim was to boost sales in the US and streamline the delivery of its fashion products to their new US distribution centre from the UK.  Our TariffTel system supported them in their new approach to customs classification, prioritising customs compliance and accuracy. The results speak for themselves.

 

Customs challenges when expanding into new markets

 

In 2022, boohoo Group’s orders to the US faced a lengthy delivery time of 8 to 10 days and the team used a legacy system to assign tariff codes which relied on traditional, paper-based processes and decentralised data systems.​

Their goal was to ensure the smooth and quick entry of millions of units into the US. Their first challenge was to quickly and accurately classify thousands of SKU’s, a complicated task given they stored only partial product master data. Further difficulty lay with the complexities of the US customs controls which vary significantly to the UK. ​

Boohoo group set out to transform their approach to customs classification with TariffTel.

 

Why TariffTel?

 

Boohoo group chose TariffTel as the system provided a centralised approach to assigning US tariff codes, capturing and storing essential product data which is crucial for accurate classification.

The TariffTel team had less than four months to classify thousands of SKU’s from various suppliers.​ TariffTel engaged suppliers for specific information, including size, weight, fabric composition, product images, and supporting documentation.

TariffTel was able to facilitate a level of digital transformation that allowed boohoo group to achieve a more efficient and compliant process in classification.​ The system enabled boohoo group to accurately classify and ship all necessary SKUs to the US from the UK in the four month timeframe. ​

The team achieved a 100% compliance record on 20,000 SKUs, transforming the way US operations and classifications were conducted. The initiative reduced transit times, enabling boohoo group to fulfil demand more precisely in the growing US market.

As a result of the new approach, boohoo group can now trust the 100% accuracy of its product master data, thanks to quality assurance checks and supplier integration. ​This digital transformation now serves as a benchmark for expansion into other overseas markets.​

David James, Group Supply Chain Director at boohoo Group PLC, says of the work, “This solution was transformative for boohoo group, we capture all the data required from suppliers for classification that produces the full 10 digit US HTS code. This innovation has ensured the smooth flow of goods through US Customs and since the distribution centre opened we have had zero shipment delays on products entering the US.”

 

Find out why compliance matters to boohoo group and other businesses in our blog on on the consequences of misclassification.

 

TariffTel’s combination of customs data and our unrivalled team expertise create a precision solution for every business prioritising trade efficiency and growth.

If you want to find out more about a tariff code solution that’s right for your business or want to learn how your business could benefit from TariffTel, get in touch with our team.

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