Numerous consulting firms in America warn their clients about the potential risks of international trade transactions. These companies also offer advice on how to minimize these risks. Clients are often concerned only with the relationship between two people, typically the importer and exporter. Many clients want guidance about how to secure payment, how to resolve disputes and the Intercom terms (payment terms & risk terms).
These are important considerations that clients should not ignore. Many clients forget to take into account customs duties. Your revenue could be affected by customs duties and tariffs. To obtain information about US Customs data, you can use a variety of trade data driven softwares.
The benefits of hiring:
- They can make it difficult to import or export. While you may not be subject to any duty, it is possible to obtain a lower tariff. Many clients make grave errors when determining the applicable duty on their products. It can be difficult for clients to determine the applicable customs duty to a product.
- Expert advice is always a good idea. Clients often use freight forwarders and clearing agents to inform them about the applicable customs duties. People are not usually skilled in making customs decisions. This can have serious financial consequences. Imposing retrospective duties or imprisonment can result from incorrectly determining customs duty. Also, the goods are held until all outstanding taxes have been paid. Recent case law has shown that ignorance and intent on the part either of the importer nor exporter are not relevant factors in the mitigation of incorrect duties, fines, or imprisonment retroactively.
False declarations could mean that you are not involved in the export or import of this product. You may be unable to import or export the product. This was evident in recent quotas for clothing and textiles from China. Importers were often suddenly exempt from quotas after they imported goods with incorrect tariff headings. This can be avoided by consulting a lawyer. This will save your business more money than any loss they might have suffered if they didn’t get this advice.
The amount of tax a product is subjected to in customs duties does not have to be limited. It might be possible to use this information to position your company strategically. A thorough understanding of customs duties will reveal that there are many ways to get a refund (also known as a drawback, discount or rebate) for import taxes you have already paid. This knowledge can help you position your company as an exporter. Find out more about US Trade Data.
These imported goods are exempt from tax and include:
- Imports of goods used in the manufacture of other products
- Imports of goods used in the production of other goods for export
- Imports of goods temporarily kept in a country to repair, adjust, or be modified. then reexported.
- Local consumption of imported goods
- Every refund is different and may not be available to importers. To receive refunds, importers must submit an application. Before an application can be approved, the importer must comply with specific legal requirements. The laws that are being followed will determine the purpose of the import. It is worth looking at your company’s customs exposure. This could save your company a lot of money.
