Avoid - Mitigate - Recover: Your Guide To Effective U.S. Tariff Management
With U.S. tariffs on the rise, companies must be proactive in mitigating and recovering costs. Learn how classification engineering, valuation strategies, and more can help.
In recent years, U.S. trade policies have undergone a major shift, especially with the implementation of tariffs on imports from countries like China. What began as a strategy to rebalance trade relations has now evolved into a comprehensive and often contentious approach to trade globally. As companies in the supply chain face the rising costs of these tariffs, it's become critical to understand how to mitigate, avoid, and recover these costs. In this blog, we’ll walk through the strategies that can help you navigate this turbulent environment and continue operating effectively.
What I will cover in this blog:
How can you avoid tariffs?
What are the ways to mitigate tariff impacts?
How can you recover from tariff impacts?
We will also draw a conclusion and offer recommendations for next steps.
1. How can you avoid tariffs?
Avoiding tariffs requires careful planning and strategic adjustments at various stages of the import process.
Classification Engineering:
U.S. Customs and Border Protection (CBP) can only apply duties to goods based on their classification. By using classification engineering, importers may be able to lower or eliminate duties. For example, components imported separately may fall under different tariff classifications than the finished product, allowing you to benefit from lower tariffs. Special provisions under HTSUS Chapter 98 can also allow some products to avoid high tariffs when used for specific purposes or production scenarios.
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Customs Manager USA is a leading customs consultancy firm assisting U.S., EU, and UK companies in navigating the complexities of U.S. trade regulations. From customs clearance to compliance training, we provide integrated support services tailored to your business needs. Based in downtown New York, we work with a network of specialists across the U.S. to deliver expert guidance.
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