Free Trade Agreements/Other Duty Preference and Benefit Programs
NAFTA, the Central America Free Trade Agreement (CAFTA), the US-Singapore Free Trade Agreement, the US-Israel Free Trade Agreement, and various other trade agreements, as well as special duty programs such as the Generalized System of Preferences, offer companies unprecedented opportunity to reduce duties on shipments to the United States and abroad. These agreements have created new avenues for both US and non-US companies to take advantage of economic opportunities throughout virtually all regions of the world.
We have extensive experience in helping companies evaluate their eligibility for these trade preferences. Our attorneys have developed client-specific analytical tools so in-house personnel are able to determine product qualification. We also have established record-keeping policies and procedures, and represented clients when duty preference claims have been audited or challenged by US and foreign authorities.
Drawback
Customs drawback has detailed and complex requirements necessitating some expenditure of resources. Its benefits, however, also are indisputable – a refund of 99 percent of the duties paid on goods imported into the United States, provided that proper authorization and documentation are submitted to CBP. Drawback benefits can also extend to the importer, manufacturer, or exporter.
We assist companies by projecting their potential duty savings using drawback, developing and implementing a drawback compliance program, identifying the required import/export documentation, and working with consultants and brokers in preparing and filing drawback claims with CBP.
We offer drawback training that includes webinars and in-house seminars. We also represent our clients on drawback audits conducted by CBP.
Duty Deferral Programs – Foreign Trade Zones (FTZs), Bonded Warehouses, and Temporary Importation Bonds (TIBs)
Arent Fox has extensive experience with duty deferral programs and offers a wide range of services that help our clients defer, limit, or reduce their duty liabilities. Utilizing FTZs and bonded warehouses can increase cash flow by delaying duty payments on imports, reducing duty liability, and eliminating the need to pay duty altogether in certain cases. Temporary importation bonds offer additional opportunities to avoid, delay, and reduce duty payment.
The services we offer include assisting clients with the FTZ application process, setting up and maintaining bonded facilities, and establishing temporary importation programs, including the development of procedures aimed at ensuring compliance with the program’s requirements. Our attorneys also provide analysis on which duty deferral program or combination provides the best cost savings for our clients.
Other Duty Reduction/Elimination Initiatives
Our lawyers routinely seek duty reduction opportunities through an analysis of classification and valuation procedures in order to further reduce duty expenses to the fullest extent allowed under the law.
