The money spent on customs and duties are normally invisible to the management, but is a direct effect on every company. Clearit USA importing experts have presented some of the best strategies to save a fortune by identifying and capturing these savings. Read on.
The value of the imported goods can have an impact on the amount of duties paid, but the sourcing of the materials as well as the products can immensely affect your duty spent. There are many subtle chances on reducing the impact of customs and duties by carrying out analysis on the areas like
- Free Trade Agreements and special trade programs
- Substantial transformation
- Reduction of certain costs
- First sale rule
- Duty deferrals or refunds
Companies when importing the merchandize that will be exported may be qualified to have the duties to be relieved at the time of the import or they can also recover the duties being paid on that imported merchandize once they are exported. The companies which are importing merchandize into the US or Canada incur an immediate duty cost as the merchandize cross the border. You can make the most of these opportunities using:
- Foreign trade zones
- Duty deferrals
- Duty drawbacks
The US Customs and Border Protection as well as the Canada Border Services Agency issue advance rulings, binding rulings, and other legal moves that can impact the import of the goods into the United States as well as Canada. This creates a probable chance of getting a ruling that can offer a cost savings chance for your business.
Additional ways to reduce the custom duties in your business.
There are many other methods to cut down on the customs and duties. It is determined on the basis of 4 what’s. And when you manage the impact of these 4 what’s, you manage to earn more profits.
- What the goods are, means what are their natures and features? It ascertains tariff code and hence the duty rate.
- What is the origin of the product, means where was it dug up, cultivated, farmed, further modified and not just shipped from? It ascertains if preferential, standard or additional duties are payable.
- What the structure of the transaction is, means if it was on sale, leased, loaned, free of charge, under warranty or repair arrangement? It ascertains the customs value.
- What happens once the goods are imported, it means that were they sold, further manufactured, repaired and returned, stored and re-exported? It determines if various reliefs are available.
By paying heed to these strategies, your business can save a few hundreds of dollars. You are welcome!