Correct accounting for duty drawbacks with outward and inward processing in global production networks

Häntsch, Marius; Huchzermeier, Arnd

doi:10.1016/j.omega.2015.04.007

Cited by 9 publications

(6 citation statements)

References 20 publications

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“…Duties on import ; Goetschalckx et al (2002); Yang et al (2004a); ; Choi et al (2012) Duty drawbacks Mariel and Minner (2015); Häntsch and Huchzermeier (2016) Government laws, regulations and local content requirements Lee et al (1993); ; MacCarthy and Atthirawong (2003); Differential tax rates and transfer pricing schemes Vidal and Goetschalckx (2001); ; Fernandes et al (2015) Exchange rate fluctuations Manuj and Mentzer (2008); Environmental concerns…”

Section: Factors To Be Considered In Global Supply Chains Main Refere...mentioning

confidence: 99%

“…A global approach toward postponement is not new to the research agenda van Hoek, 1996;van Hoek, 2001). Nevertheless, global supply chains have evolved over time, being affected by factors such as government regulations, subsidies provided by governments, customs tariffs, international trade and transport considerations, differences in workers' knowledge and expertise, and differences in international production costs (MacCarthy and Atthirawong, 2003;Häntsch and Huchzermeier, 2016). Therefore, in the current competitive landscape, new opportunities for implementing postponement strategies are on the rise Olhager et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Postponement Strategies for Global Downstream Supply Chains: A Conceptual Framework

Prataviera

Perotti

Melacini

et al. 2020

J of Business Logistics

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Postponement is a well-known organizational concept and usually relates to the deferment in time of manufacturing and/or logistics operations. In the current global competitive landscape, situations where postponement can be applied are rapidly increasing. Faced with the wide range of customs duties and free trade agreements currently in place, companies need to (re)design their postponement strategies to customize their products appropriately, and to the proper degree, in each market. As the actual location where operations take place has a major impact on a company's overall performance, the spatial perspective must also be taken into account when designing global postponement strategies, alongside the conventional temporal perspective.Heretofore, the academic literature does not offer any comprehensive framework on a global scale either for handling what is known as the postponement boundary problem, or for conceptualizing the related postponement strategies. Building on previous research, the aim of the present study is to investigate the postponement concept in a global environment with a downstream focus. The intended purpose is twofold: first, to review and expand previous studies on the subject and, second, to provide some guidelines for conceptualizing global postponement strategies.A structured literature review was first conducted, followed by the development of a framework that combines both the temporal and the spatial dimensions. Finally, the framework was applied to a group of 28 business cases taken from the literature, to act as a bridge between academic theories and practitioners' current business operations.

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Section: Factors To Be Considered In Global Supply Chains Main Refere...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Postponement Strategies for Global Downstream Supply Chains: A Conceptual Framework

Prataviera

Perotti

Melacini

et al. 2020

J of Business Logistics

View full text Add to dashboard Cite

show abstract

“…Other relevant issues to consider are customs duties and trade tariffs (Arntzen et al, 1995;Dong and Kouvelis, 2020), as well as customs requirements and procedures (Sawhney and Sumukadas, 2005) or duty drawbacks (Häntsch and Huchzermeier, 2016). Generally, trade barriers are meant to protect national competitiveness from foreign competition, and they are usually classified into two types-tariff and non-tariff barriers (MacCarthy and Atthirawong, 2003;Adams et al, 2008).…”

Section: Customs Dutiesmentioning

confidence: 99%

Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications

Prataviera

Norrman

2020

International Journal of Logistics Research and Applications

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Multinational corporations (MNCs) are moving not only their headquarters but also their logistics operations to low-tax jurisdictions to minimise the tax burden. However, the logistics and fiscal domains are guided by different principles. This study aims to explore the cross-country implications of locating facilities in low-tax jurisdictions to take advantage of tax arbitrage. A single case study is developed, considering a fashion MNC that moved its European warehouse from Italy to Switzerland.The study offers theoretical insights about cross-country logistics network reconfiguration, formalising three possible scenarios and deepening the related implications. A quantitative evaluation of those scenarios is proposed, updating logistics cost items by including fiscal specifics and exploring the mutual interdependence between logistics and fiscal elements. To improve the study's managerial contribution, the influence of contextual parameters is also investigated, showing that facility location for tax purposes does not necessarily lead to maximise net income after taxes.

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“…In context of global automotive production network design, two recent publications by Mariel and Minner [12] and Haentsch and Huchzermeier [13] study the impact of duty drawbacks. Similarly as LC-requirements, also duty drawbacks may have a signicant impact on the global production footprint.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Mariel and Minner [12] present a model that simultaneously considers strategic capacity adjustments and duties and duty drawbacks for multi-stage, multi-product production processes. Similarly, Haentsch and Huchzermeier [13] present a case study where the impact of possible future duty rate changes or FTA, like between the European Union and the United States, is investigated.…”

Section: Literature Reviewmentioning

confidence: 99%

Benders decomposition for a strategic network design problem under NAFTA local content requirements

Mariel¹,

Minner

2017

Omega

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Correct accounting for duty drawbacks with outward and inward processing in global production networks

Cited by 9 publications

References 20 publications

Postponement Strategies for Global Downstream Supply Chains: A Conceptual Framework

Postponement Strategies for Global Downstream Supply Chains: A Conceptual Framework

Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications

Benders decomposition for a strategic network design problem under NAFTA local content requirements

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