Are you paying too much in US customs duty or concerned about the impact of the soon-to-be implemented tariffs on China-origin merchandise?
Many companies impacted by tariffs on China-origin imports into the US may not now be paying much, if any, duty on their US imports. Many technology products, for example, enjoy duty free treatment upon importation into the US from most origins. As a result, these importers likely have not Implemented some common duty planning tools readily available to all US importers. Amongst these common duty planning tools is the “first sale for export” basis of valuation. Many US importers purchase their imported merchandise through trading companies, whether related trading entities or otherwise. This common purchasing structure could result in unnecessary duty payments in the US. With duty rates on apparel, footwear, luggage, and possible a myriad other China-origin goods, properly implementing a program enabling the first sale basis for valuation could result in significant savings without renegotiating process with your vendors or unsettling your commercial terms.
We highlight the basic function of the program here and are happy to discuss this further with companies who already pay significant duties (e.g., apparel and footwear importers) and those concerned about minimizing upcoming tariffs on China-origin merchandise such as technology products.
Please contact me to discuss further at william.marshall@tiangandco.com or +852 28334977 / 64696776.