Customs Compliance & Duty Saving Strategies
U.S. Customs Free Trade Agreements
An imported product may qualify for entry under a Free Trade Agreement (FTA), and receive duty free or reduced duty treatment. Several factors may determine eligibility for preferential duty treatment under FTA’s, such as rules of origin and classification.
Contrary to what many people believe, the country where the product was manufactured is not the sole determining factor on a product’s eligibility for FTA preferential treatment. An import entry clerk will frequently use the exporting country, or the country of the product’s manufacturer as a sole indicator for determining FTA preferential treatment. This erroneous method may result in paying significantly more duty, or not enough.
The underpayment of customs' duty could result in surprise rate advances, and more scrutiny into a company’s importing activity.
If you believe your product qualifies for FTA preferential treatment, or simply want to investigate your product’s eligibility, then the Davidson Law Group can assist you. Please call the Davidson Law Group for a free consultation and allow our dedicative team to discuss your product’s eligibility for FTA preferential treatment.
Foreign Trade Zones and Bonded Warehouses
Foreign-Trade Zones (FTZ) are secure areas that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.
Foreign and domestic merchandise may be moved into zones for operations, not otherwise prohibited by law, including storage, exhibition, assembly, manufacturing, and processing. Under zone procedures, the usual formal CBP entry procedures and payments of duties are not required on the foreign merchandise unless and until it enters CBP territory for domestic consumption, at which point the importer generally has the choice of paying duties at the rate of either the original foreign materials or the finished product.
Please call the Davidson Law Group for a free consultation and allow our dedicative team to discuss with you your options and determine whether you may benefit from using a Foreign Trade Zone.
Duty drawback is a refund of 99% of the duties paid on goods imported into the United States that are subsequently exported. The drawback claimant can be an importer, manufacturer or exporter, provided the proper authorization and documentation is filed in a timely manner with U.S. Customs.
If you export previously imported merchandise, then you may be eligible for duty drawback, which will allow you to receive a refund on previously paid duties and taxes.
Davidson Law Group focuses on helping our clients qualify and develop a successful duty drawback program. Please call the Davidson Law Group for a free consultation and allow our dedicative team to discuss with you whether you are eligible for a drawback program.