Stand Back Magellan: FTANavigator

stand-back-magellanIn 1519 Ferdinand Magellan set sail on an expedition to be the first person to successfully cross the Pacific Ocean. Relying heavily on the navigational technology of his time he would have depended upon instruments such as hour glasses, palnispheres, quadrants and compasses, all of which would have been considered high technology.

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Topics: Free Trade Agreements, HS Classification, Managed Trade Services

Feelin’ Groovy About NAFTA

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At the beginning of the year I, like almost everyone else on the planet, made a couple of resolutions. And like almost everyone else on the planet, I kept them for about a week.  All but one that is. This year, as in years past I resolved to eat healthier, exercise and lose some a lot of weight. Three months in and overall I’m doing pretty well. I’ve changed a lot of what I put in my body; no more pop, no more fast food, a ton more fruits and vegetables. I joined a gym for the first time in my life and work out 4 – 5 times a week. Now, don’t get me wrong, not every week has been great. In fact, there have been a few times I have struggled and wanted to throw in the towel. And for a few days last month, I did. I’d lost a good amount of weight, was tired of eating “healthy” and perhaps mostly, tired of getting up a 5:00 am every morning to go to the gym. So, for about 4 days in a row I slept in, stopped counting my calories and just let it go. Then on day 5, out of curiosity, I stepped on the scale. Ouch! It is amazing how much can happen in such a short amount of time when you stop paying attention and do not notice the changes occurring in your process or routine – how one piece of cheesecake, if not served in a controlled portion, can throw everything out of whack.

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Topics: Free Trade Agreements

Duty Mitigation: Tariff Concession System in Australia and New Zealand

blog-austnz-011615Often when I ask importers about their duty liability the response I receive is, “Yes… but its only 5%.”  Well if I had 5% of the 5% for every time I ask…. you get the picture.  Whilst the duty paid on individual importations may not amount to a substantial cost, over time the “only 5%” can add up to significant sums.  If you are still not convinced, consider what’s more challenging: expanding your sales to increase net profit by 5%, or reducing the cost of the imported product through duty mitigation?

I suspect many of you have continued reading, so allow me to introduce a valuable duty mitigation method: the Tariff Concession System. In Australia the Tariff Concession System was designed to help industry become more competitive in the international markets by allowing duty-free importation of certain products that are eligible for a Tariff Concession Order (TCO).  Upon application, a TCO is made in respect of goods if substitutable goods are not produced in Australia, in the ordinary course of business.  In this context, substitutable goods are Australian produced goods which have a use corresponding to a use of the imported goods. A number of goods are excluded from TCO eligibility, such as clothing, foodstuffs and some passenger motor vehicles.

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Topics: Duty Drawback, Free Trade Agreements, South Pacific

10 Steps for Assessing Your Compliance Program Globally

drawingAs regional companies look to grow into multi-nationals in the never-ending search for new markets, an understanding of Global Trade Compliance becomes critical for several reasons.  One of the most obvious reasons is to reduce the risk of running afoul of local laws and regulations. Additionally, maintaining a consistent and reliable supply chain and taking advantage of various government programs such as Free Trade Agreements, Duty Drawback, Security Programs and other initiatives designed to benefit compliant importers and exporters speeds the supply chain and saves money. 

As companies expand into more and more markets, inevitably they reach a critical mass where the need to standardize compliance functions across multiple geographies, business units, and Customs regimes becomes apparent.  By “apparent,” we mean that you have done such a good job that you have been gifted compliance responsibilities for not 1 country, but 108. This is often a daunting task given the labyrinth of varying trade regulations. The first phase to this process is assessing the company’s current state compliance profile on a global basis, then moving to implement global frameworks to bring a level of consistency across the network.  Here are a few simple steps to get you started:

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Topics: Reconciliation, Duty Drawback, Free Trade Agreements, Export Consulting

Do You Really Need a Binding Ruling? Yes, You Do!

sooner_or_laterBinding rulings allow an importer to get a determination on the correct classification and duty rate for their products in advance of importation.  A binding ruling request can be submitted electronically or in a letter to the CBP Information Exchange, National Commodity Specialist with a detailed description of the product along with relevant specifications, descriptive literature and samples. The importer generally receives a response within 30 days. Once Customs issues the ruling, the classification is binding for all US ports.  

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Topics: Free Trade Agreements, HS Classification