TradeLane

First and foremost, I wanted to THANK our Customers and Colleagues around the world for the best year that Tradewin has ever had. 

Thanksgiving and the 4^th of July are my personal favorite holidays. Every year, I take off the Tuesday and Wednesday before Thanksgiving. This tends to be one of the few times of the year when there are no Customs Audits, the budgets are done, and my phone is a little quieter. I have a tradition of getting lost in the woods with my dogs for hours during those days. It is quiet, the New England leaves are beautiful, and its gives me a chance to think about everything and nothing. The Germans have an elegant word for this… “Waldeinsamkeit”. Ok, maybe it isn’t that elegant, but it’s apt. 

As we work our way to the Holiday season and its frantic pace, don’t forget to take the time to pause, reflect, and think about what you have accomplished and what still needs to be accomplished. Then act. Never forget to act. 

If you need help along the way, give Tradewin a call. We are here to help.  

When traveling between the United States and Europe, one of the most startling differences that I observe is the concoctions that we put on our French fries. First of all, we can’t agree whether or not these delicious fried potatoes should be called fries, chips, or “freedom fries.” Once served to us, Americans love their ketchup, continental Europeans love their mayonnaise, and the occasional Brit won’t eat their chips without a particular brand of brown sauce named after Parliament. However, we all can agree that, while bad for you, fried potatoes are delicious. 

The EU and U.S. also mostly agree that international trade is a good thing. Trade stimulates job creation and incentivizes economic growth. Markets are often opened by the implementation of preferential trade agreements between two jurisdictions. The U.S. and EU are currently negotiating the Transatlantic Trade and Investment Partnership (TTIP) to strengthen the ties between the two continents and to stimulate growth. 

Fancy cocktail toothpicks, yoga pants that do not leave much to the imagination, cell phone cases that are no longer in style, and cars that were washed and detailed by Hurricane Sandy while waiting at the port are just some of the items that were imported into the U.S. with the intention of being sold. Instead, they were disposed of and drawback claimed on the duties and fees paid.

People usually think of Duty Drawback as merchandise that is imported duty paid, then exported without entering the commerce of the U.S. However, if the merchandise is not sellable due to damage or defect (or poor taste) the merchandise may be returned to the foreign vendor or destroyed in the U.S. and a claim for drawback of duties paid can be filed. Often it is more cost effective for a foreign supplier to write off the merchandise as a loss and pay for a destruction rather than bear the costs of shipping the items back to the country of origin. This is most common when the items are damaged beyond repair (water-filled automobiles), seasonal (holiday sweaters) or just plain out of date (last years’ cell phone case). 

What do treadmills, party decorations, stereo equipment, and fun, sleeved blankets have in common? 

These are all products that have appeared on duty drawback claims that have been filed with U.S. Customs. Many everyday products that are sold in the U.S. are also sold in other countries. Items that are imported duty-paid into the U.S. prior to moving to their final destination outside the U.S. are eligible for a duty refund. 

If a company wants to import 6,000 fun, sleeved blankets in November the company must pay U.S. duty and fees on all 6,000 blankets. If the company has the intention of only selling 1,000 in the U.S. for holiday family pictures and chooses to send 5,000 to Canada for the start of indoor curling season, the company can get a refund of 99% of the duties and fees paid on the 5,000 blankets exported to Canada to warm those stylish curling fans.