What are the best ways to reduce customs duties during import?

We all want to pay as little as possible in duties and taxes, but importers must be extremely careful to ensure that they don't pay the "lowest duty" but that they pay the CORRECT duty amount. While it is possible to do "HTS tariff engineering" legally to reduce duties paid, it is important that importers don't underpay duties. The underpayment of duties can result is sizable penalties against the importer, and the importer will be forced to pay the underpaid duty plus interest. Importers that underpay duties can face a Customs audit and other costly actions. Work with your Customs Broker to ensure the correct classification of your products. A binding HTS ruling can be helpful too. Got ??? steve@cssbrokers.com

Reducing customs duties during import involves strategic maneuvers: leverage Free Trade Agreements for preferential tariffs, accurately classify goods for lower duties, and explore duty exemption programs. Modify designs for tariff benefits (tariff engineering) and utilize customs warehouses or free trade zones. Seek duty drawback schemes, consider value addition, review country of origin, and seek professional advice for compliance. Continuously assess strategies to align with evolving regulations for effective duty reduction.

Consider using First Sale valuation. Usually import duty is based on the price paid by the importer. If there is a intermediary in the transaction who marks up the price prior to the import sale, the importer pays a higher duty rate. Using First Sale for Export, the importer pays duty on the price paid by the intermediary or middleman which could result in a substantial savings.

Here is what else to consider - Duty exemptions Check your country s customs exemption schedule to establish if the products or entities importing qualify for duty exemption. Common exemptions apply for UN entities, Donor funded projects, capital goods, imports in some focus sectors like oil and gas, solar and alternative energy projects, to mention but a few. Always advisable to apply for the exemption, where required in good time before importation.

Custom duties are tariff imposed on any importer when goods are being traded into a country. Every tariff is determined by Import Duty % and most likely attracts VAT. It is very important to choose the correct harmonized code. Why? Most of importer wishes to pay low duty, to save their cost and earn most of profit. But it doesn’t work this way! The reason behind it is because you attract a penalty when you decide to pay low duty. What’s the right way to go forward with it? Choose the correct Harmonized Code to avoid paying any penalties and interest, and save yourself time. TIME IS MONEY!

Muchos exportadores desconocen el tema, pero ciertos fabricantes importan a consumo una materia prima, que puede ser importada bajo un régimen especial diferente, como lo es la admisión temporal para perfeccionamiento activo. Aquí ingresa bajo 0 tributos, no obstante se debe exportar en cierto periodo de tiempo para justificar dicha importación qué ha sido adaptada al producto final. Es un incentivo al productor y exportador en Ecuador.

Tariff classification is the best way to reduce customs duties, based on the previous experiences of previous importers, through clearing agent

Todos queremos pagar lo menos posible en derechos de importación. Por ello considero que se debe tomar en cuanta los siguientes 3 puntos. El primero es la clasificación arancelaria ya que realizar una exacta clasificación de la mercadería permitirá determinar los derechos arancelarios. El Segundo punto muy importante es saber el origen de mi mercadería porque esto me permitirá saber si mi país tiene suscrito algún tratado o convenio con el país de origen. El tercer punto es evaluar si dicha fracción arancelaria está considerada dentro del tratado para poder optar a este beneficio y con ello reducir al máximo los derechos de aduana durante la importación.

Dependendo do seu modelo de negócios, drawback não é a opção mais interessante, uma estratégia em classificação tarifária seja uma estratégia mais assertiva.

Nem todos os negócios cabe a aplicação do Drawback, mas para as empresas que compram insumos para produção que, posteriormente, será exportado, é uma forma perfeita para reduzir os custos de importação.

To minimize customs duties during import, businesses can explore tariff classification reviews, ensuring accurate product categorization. Leveraging free trade agreements can lead to preferential rates or exemptions. Implementing proper valuation methods, such as using transaction value or applying for duty drawback programs, can reduce assessed duties. Strategic supply chain planning, including utilizing bonded warehouses or foreign-trade zones, may offer duty deferral or exemption benefits. Collaborating with customs experts, staying informed on regulatory changes, and pursuing duty minimization strategies can optimize cost efficiency in international trade.

Having your strategy/customs experts start discussions with customs/revenue authorities on the acceptable valuation would be a good approach. The valuation could be explained and revised until the business and the local authorities are able to find the balance point. This would be especially beneficial for companies who wishes to be in compliance and not face issues of tax evasion in the future.

La diversité des méthodes d'évaluation douanière offre aux entreprises une flexibilité stratégique pour minimiser les droits de douane en adaptant l'approche à la nature spécifique de leurs marchandises. En choisissant la méthode la plus pertinente, les entreprises peuvent réduire la valeur déclarée de leurs marchandises et garantir une évaluation plus précise, particulièrement importante lorsque la valeur transactionnelle ne reflète pas fidèlement la réalité

Même si la valeur transactionnelle semble être une solution pour réduire la valeur en douane, le code douanier donne au douanier le droit de contester cette valeur. Il y a aussi des mécanismes qui permettent à l'État de contrôler les valeurs à l'exportation, ex bureau veritas a été un organisme au service de l'état pour cette cause. En réalité il est mieux de jouer sur les incoterms, pour bénéficier des valeurs estimatives en douane au lieu dune valeur réelle, lors que le challenge logistique repose sur la maitresse des coûts. Mais, cette processus doit impliquer votre déclarant qui doit jouer le jeu avec le chef du bureau de douane (...), et le service logistique doit veiller à la cohérence des documents lors des archives.

Another method that is interesting, although harder to implement, is using a Foreign Trade Zone (FTZ). If the customer manufatures product in a dedicated FTZ, and some components are highly dutable, assembling the product within the FTZ and then importing the finished goods, might lead to a lower duty percentage. Every case is different, but this is another alternative.

Consulting a customs expert with regards to a specific strategy; such as tariff classification is advisable to ensure compliance and effectiveness.

Na minha experiencia vejo que a classificação dos produtos tem ficado cada vez mais complexa, uma vez que dois importadores podem classificar o mesmo componente de maneiras diferentes (por exemplo). Sempre imprescindível consultar um especialista.

The most applicable tariff clasification over the most "convenient"... always! Choose the most conveninent tariff classification could get a more expensive result in long terms when authorities audits or internal reviews figured out. Once identify the tariff code (with a impeccable support) if still have a duty rate then consider to apply for drawback and other promote programs depending the local legislation and of course the regime / purpose of your import / export operations.

Hoje grandes empresas não ganham dinheiro somente com produtos e estratégias operacionais, grandes empresas ganham dinheiro com estratégias e planejamento tributário, saber o correto a pagar de impostos e quais pontos de entrada no país são mais interessantes são cruciais para o negócio.

If you are Importing in India, apart from FTAs and Classifications one should opt for modern day approaches to save duties like opting for AEO Certification, Duty Deferment, Direct Port Delivery (DPD), MOOWR Scheme Etc. This Techniques will help you to cut your last mile logistics costs without impacting your statuary dues for duty.

If you are shipping to EU from outside EU and your country has a free trade agreement with EU, the exporter should apply for EUR 1 movement certificate so that the recipient can benefit from lower rates of duty or 0 % duty. This will benefit the exporters business as well when your customer doesn't have to pay high tax on your product

To minimize customs duties during import, strategically classify goods based on tariff codes that attract lower rates. Thoroughly research and accurately assign Harmonized System (HS) codes, ensuring alignment with product characteristics. Leverage preferential trade agreements and exemptions available for specific classifications. Regularly update knowledge of tariff schedules to exploit any changes or amendments. Collaborate with customs experts for precise classification, mitigating the risk of overpayment and enhancing cost-efficiency in international trade.

Considera la importación por partes para ensamblar en el destino final. Separa la parte sin la cual no puede funcionar o no sirve el producto.