08/27/2018
This past Thursday September 23rd, Office of the United States Trade Representative issued it new list of additional 10% - 25% ad valorem tariffs which are to be added on top of the current published tariff rates.
Like last July's ad valorem tariff list, it would not be surprising to see the new list applied in the same manner.
What does this mean for you? Well, it means a few thing, most importantly it may indeed increase you landed duty paid cost by as much as 25% on cost of material/goods. This is no little figure to shrug your shoulders at, considering most businesses run at or near a 20% margin, this could wipe out your profits and leave you noncompetitive in your market.
Further, these new costs may not have even hit your books yet, pending your brokers notification of increased duty invoices or your A/R department yet to process these new fees. Worse, you have no idea what I'm talking about because your logistics department and/or service provider aren't up to speed with the rapid changing import environment.
What can you do? Talk to your logistics team and/or logistics provider, see what they know, are they aware of these new ad valorem tariffs, are they affecting your products?
If they don't have the answers you need readily available you could be in for some big, scary surprises in the form of additional duty invoices!
Can you risk being caught unaware, unprepared and under serviced?
If you find yourself facing these issue alone, know that you're not alone, there are several knowledgeable Licensed Customs Brokers & law firms specializing in these areas that can assist.
If you are already one of my clients, you've received my outreach notices, if you've skimmed and filed them away without taking note, send me an email and I'll be happy to go over all this again and how it relates to your company and products.
Kris Lowery, Licensed Customs Brokers & CEO, Premiere Customs Brokers Inc.
[email protected]