More Valuation & Tariff Reduction Strategies

In this episode of the International Trade Resource Podcast, host Kim Kirkendall chats with international trade expert Alejandro Alcalde as they dive into additional valuation strategies and explore fresh opportunities amid an ever-evolving tariff.

Their conversation builds on prior discussions about first sale valuation and takes a deep dive into other options, including the use of free trade zones and bonded warehouses. Listeners will gain insights into how strategically delaying the import process by utilizing these zones can offer relief from duty and tax obligations—at least temporarily—as companies navigate unpredictable tariff fluctuations.

In addition, Kim and Alejandro unravel the nuances of special customs provisions, particularly under chapter 98 of the U.S. tariff schedule. They discuss how various scenarios, such as the handling of returned goods, repair and alteration processes, and even the strategic use of U.S. goods assembled abroad, can be leveraged to reduce costs and optimize operational flows. 

Kim and Alejandro also emphasize the critical importance of detailed documentation, robust traceability systems, and close coordination with customs brokers to ensure compliance with ever-changing regulations. Tune in to learn how these advanced valuation strategies can help companies better manage risk and optimize their international trade operations.

Key takeaways:

• The benefits and strategic considerations of using free trade zones and bonded warehouses to delay duty and tax payments.
• An overview of special customs provisions under chapter 98, including processes for returned goods and repair/alteration scenarios.
• Insights into the complexities of U.S. goods assembled abroad and the importance of maintaining country-of-origin status through proper documentation and operational planning.
• Practical advice on ensuring traceability and aligning with compliance requirements in a volatile tariff environment.

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