Trade Compliance in the US as a function has gone mainstream as tariff policy has led to increased duty exposure and added complexity to entry rules across industries. Companies now more than ever are focused on maintaining their compliance posture while compliantly avoiding and recovering duty payments wherever possible. 

Tradewin’s Vice President, Michael Bellezza, discusses this paradigm shift below. Since these duties are typically large and broad, affecting a wide range of commodities and origins, higher and more complicated customs duties are the new normal.

To succeed, companies must move beyond a reactive stance and adopt a proactive, strategic approach, staying ahead of these changes. We have summarized the essential steps your business must take right now to build a more resilient and cost-effective trade program.

Watch the video below to hear Michael Bellezza discuss the critical shift in trade compliance and how to implement your mitigation strategy.

The Core Strategy: Compliant Cost Reduction

Importers cannot reduce costs without first knowing the actual cost and regulatory status of their goods. The foundation of any successful mitigation effort is a bulletproof trade compliance program.

As Bellezza emphasizes, this starts with correct HTS (Harmonized Tariff Schedule) classification. If this fundamental data is wrong, every subsequent mitigation effort, from duty calculation to duty recovery, will be flawed. This means organizations must have precise, accessible data on every shipment, including the origin, valuation, and specific tariffs applied. A solid compliance posture ensures the data visibility and trust required to unlock high-value duty-saving programs. 

Key Programs to Unlock Hidden Savings

Once your data foundation is secure, you can immediately begin leveraging strategic duty mitigation programs. These programs offer compliant, regulatory-backed methods to reduce your duty spend significantly.

The first powerful tool is the Duty Drawback Program. This program allows your company to recover up to 99% of duties, taxes, and fees paid on imported merchandise that is subsequently exported or used to manufacture an exported product. Beyond drawback, companies must aggressively pursue Free Trade Agreements (FTAs).

Now, re-examining agreements like USMCA to maximize the Rules of Origin (ROO) qualification fully can provide an immediate and substantial reduction in duties.

Finally, a thorough examination of Valuation and True Origin analysis is crucial. Valuation ensures non-dutiable charges are correctly excluded, while confirming the True Origin of your product is essential for accurate tariff application in complex, multi-country supply chains.

How Tradewin Can Help

In today's challenging trade environment, you need a partner who sees beyond the immediate headaches of tariffs. Don't let high duties simply erode your profit margins. 

Tradewin is that partner. We integrate strategic compliance across your entire supply chain.

Our global team of trade specialists and Licensed Customs Brokers owns the execution and optimization of your programs. We provide complete, end-to-end support, covering:

• Detailed HTS Classification
• Rules of Origin Analysis
• Free Trade Agreement Qualification & Solicitation
• First Sale for Export Set-Up and Management
• Post Entry Recovery
• Duty Drawback
• Foreign Trade Zone Implementation and Management

Don’t let high tariffs erode your profit margins. Contact Tradewin today to schedule a comprehensive Trade Remedy Mitigation Assessment and transform your duty expense into a competitive advantage.