Numerous consulting firms in USA regularly warn their clients about the dangers associated with international trade transactions. They also advise them on how to minimize these risks. Clients are often only concerned about issues that relate to the relationship between two parties, namely the importer or exporter. Clients often ask for advice about how to secure payment, what Intercom terms (payment and risk terms) are, and the best way to resolve disputes.
These are important considerations that clients should not ignore. However, clients often neglect to take into account customs duties. Your revenue could be affected by customs duties or tariffs. In order to get the information regarding US customs data, you can go through various trade data driven softwares.
Benefits Of Hiring:
- They could even render importation and exportation financially impossible. No duty may be due, a lower duty is imposed, or that you are eligible for a rebate (or refund) of the customs duties paid. Clients often make grave errors when determining what customs duty applies to their products. It is difficult to determine which customs duty applies to a product.
- Expert advice should be sought. Clients often use freight forwarders or clearing agents to advise them about the applicable customs duty. There are not many people who are skilled in customs determinations, which can lead to huge erroneous decisions that have serious financial consequences. An incorrectly determined customs duty can result in the imposition of a retrospective duty or even imprisonment. The goods are also impounded until all outstanding duties and fines are paid. Recent case law has shown that the ignorance or intent of either the exporter or importer is an irrelevant factor in the mitigation of retrospective impositions of correct duties, fines, or imprisonment.
An incorrect declaration could also indicate that you have never been involved in importing or exporting this product. In certain cases, this could prevent you from further exporting or importing that product. This was evident in recent quotas placed on textiles and clothing imported from China. Many importers were suddenly unable to receive a quota because they had been importing under an incorrect tariff heading. You can avoid such hassle by getting a prior legal opinion. This would be a lot cheaper than any loss the business may have suffered because they didn’t seek such advice.
However, customs duties do not only determine the tax applicable to a product. You may be able to use it 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 rebate or drawback) for the import tax you paid. This knowledge could be used to position your company as an exporter. Find out more information about Us Trade Data.
These imports are exempt from tax and include the following:
- Imports of goods used for the production of other goods,
- Imports of goods used to manufacture other goods for export
- Imports of goods that are temporarily held in a country for adjustment, repair, etc. are then re-exported.
- Imports of goods for local consumption
- The rules for each refund are different and therefore, importers may not automatically be eligible for the refunds. To receive refunds, importers must apply for them, and preferably before goods are imported. Before approval of the application can be made, the importer must comply with specific legal requirements. These laws vary depending on the purpose for which the goods were imported. A comprehensive review of your company’s customs exposure is a good idea. This review could save your company a lot of money.
