Amounts spent on Customs duties are often invisible to management, but have a direct impact on the bottom line of every company. Farrow’s trade advisors are ready to help your company to identify and capture these savings.
These are three ways that Farrow can help your business:
1. Duty Reduction
The value of imported goods impacts the amount of duties paid however, the sourcing of products and materials can significantly impact your duty spend. There are opportunities to reduce the impact of customs duties by analyzing areas such as:
- Free Trade Agreements and special trade programs
- “Substantial Transformation”
- Deduction of certain costs (ocean freight, containerization, international insurance)
- “First Sale” rule (price from manufacturer)
2. Duty Deferrals/ Refunds
Companies that import goods that will be subsequently exported may be eligible to have the duties relieved at the time of import, or can recover duties paid on those imported goods once they are exported. Companies importing goods into the U.S. or Canada incur an immediate duty cost as goods cross the border. You can take advantage of these opportunities using:
- Foreign Trade Zones
- Duty Deferral
- Duty Drawbacks
U.S. Customs and Border Protection and the Canada Border Services Agency issue binding rulings, advance rulings, and other legal decisions that affect the importation of merchandise into the United States and Canada. This creates the possibility of obtaining a ruling that can provide a cost savings opportunity for your business.
By using these three methods your business can potentially save hundreds of dollars, if not more.