Is your company paying import tariffs, whether under the various tariff actions taken by President Trump or other more-or-less permanent tariffs, there may be relief possible. Agathon Associates has assisted several companies in avoiding, or reducing import tariffs. Contact David Trumbull at david@agathonassociates.com.
Import Tariff Mitigations Strategies
- The first thing is to define the product you will be importing, and the lesson here is that what industry calls it and what U.S. Customs calls it is not necessarily the same.
- Confirm the tariff classification, there may be another valid classification with lower, or no, tariff
- Determine whether some change in the inputs or manufacturing process could result in a change of classification with lower, of no, tariff.
- Determine whether the correct country of origin is being declared.
- Determine whether a change to the inputs or manufacturing process could result in a change of country of origin.
- Evaluate the prospects of getting an exclusion from the tariff. This will include looking successful filings for similar merchandise.
- Determine whether this merchandise qualifies for duty-free treatment under the Generalized System of Preferences (GSP) which applies to Lesser Developed Countries and Least Developed Countries.
- Determine whether the merchandise can qualify for duty-free entry from a nation with which the U.S. has a free trade agreement.
- Determine whether the merchandise can qualify for duty-free entry from a nation that is a beneficiary of Trade Preference Program.
- Determine whether the merchandise can qualify for duty-free entry from a nation with a U.S. designated Qualified Industrial Zone (QIZ).
- Determine whether the merchandise has potential to have a duty suspension or reduction by way of the Miscellaneous Tariff Bill (MTB).
- Assess potential alternative sources. Determine whether a Foreign-Trade Zone (FTZ) in the U.S. could result in deferral of tariff, reduction in tariff, of legal avoidance of tariff.
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