DUTY MITIGATION

Our objective is to mitigate or eliminate import duties for our clients.  To accomplish this objective, we have partnered with industry leaders in Temporary Duty Suspensions, Free Trade Agreements, Foreign Trade Zones, Duty Drawback, and Binding Ruling Requests.

Temporary Duty Suspensions are tariff numbers inserted in Chapter 99 of the U.S. Harmonized Tariff Schedule which allows for duty free status on imports for up to three years.  Temporary Duty Suspensions can eliminate import duties on raw materials, component parts, or even finished goods.

Free Trade Agreements such as the North American Free Trade Agreement (NAFTA), the General Systems of Preferences (GSP), the Caribbean Basin Trade Partnership Act (CBTPA), the Andean Trade Preference Act (ATPA), along with country specific agreements with Australia, Bahrain, Chile, Colombia, Israel, Jordan, Korea, Morocco, Oman, Panama, Peru, and Singapore can reduce or eliminate U.S. duties.

Foreign Trade Zones (FTZ) were created in the United States to provide special Customs procedures to U.S. plants engaged in international trade activities.  Duty-free treatment is accorded to items that are processed in FTS's and then re-exported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market.  

Duty Drawback allows importers to receive refunds of 99% of Customs duties paid on imported merchandise which is subsequently exported.  

Binding Ruling Requests ensure the correct amount of duty is paid.  Only Customs determines the proper classification and duty rate on imported goods, not the importer, exporter, Customs Broker, Consultant, or Attorney.  CBP has up to three years to determine if duty deposits are sufficient.

For more information on Duty Mitigation, please contact info@magicbrokers.com