The international trade sector is quite prominent in the US. In such a backdrop, custom duty has much relevance. It is also called import duties, and there are multiple tactics to save it. If you have a business in the US, you can apply specific ethical ways to keep the custom duty. Again, this relates to the imports in the US, where you bring a foreign commodity to the country.
The ethical ways to save customs duty are present because, at times, many business organisations end up paying more charges than the legal level. Here, you can go through different ways to save the US custom duty.
Ways To Reduce Custom Duty
Whether you import bagged packaged goods or a huge machine divided into several parts, paying custom duty is a must. Always beware of the factors on which the customs duty depends. You can control its levels by augmenting the elements. For now, take a look at the tips:
1. Never Make An Assumption
Never assume the import charges. Instead, it would be best to have authentic information regarding the customs duty. Keep in mind that every country has unique tariffs of this duty, and the US is no different.
The US Government will charge general import duties if your commodity comes from a country with normal trade relations with the US. So, you can expect a cut on the import duty by choosing the correct country for importing goods.
2. Avoid Leaving Everything On Importing Companies
Leaving the entire importing procedure on the professional organization often can result in elevated custom duty. This happens mainly due to misclassification of the product. Well, this is a mistake from the importing company’s end for which you have to take the burden.
To avoid this, you need to classify the product correctly and pay the necessary fees. Correct classification of a product can lead you to save a lot of money.
3. Gather Accurate Information Regarding Custom Duty Charges
You should always have accurate information regarding the custom duty charges. Unfortunately, the best you can do is gather this information based on the goods to import. As a result, you can derive the exact cost (including all taxes).
Remember to get the current amount of payable custom duty. In the US, import rates on taxable products are variable. Therefore, if you pay the wrong custom duty, your product might instantly change to refused shipment. Meaning it would not be shipped to you on time.
4. Consider The Goods With A Special Stipulation
If you are about to import something in the US, checking the list of special stipulation goods is a must. You should know that any goods falling on this list can carry excessive custom-duty charges. The other name for these goods is regulated products.
So, you can avoid importing regulated products to the US and save a lot of custom duty. Yet another thing that you need to keep in mind is the legal status of a commodity. Never import a commodity that is illegal in the US. This can lead you to become a criminal, and you might face punishments and hefty fines.
5. Use Tariff Codes For The Products Properly
If you are importing anything to the US, a valid tariff code is necessary. Any mistakes in the tariff codes can lead to extra costs. In a US import, you must always suggest the exporter put the tariff code properly.
For your knowledge, every tariff code comes in two parts. The first part’s digit is always locked, while the second part denotes the countries.
In case of a wrong tariff code on your commodity, extra charges might come into being. Moreover, there would be many additional costs. So, you should consider cross-checking the correct tariff code before the importing procedure starts.
6. Maintain Rulings
If you are a US-based business owner, you can get a cut-off on the customs duty. All you have to do is maintain all the importing rules given by USCBP and CBSA. Often, your negligence as an importer can lead to improper procedures resulting in false charges. However, the best you can do is thoroughly go through the ruling classes.
So, these are a few tips that you can consider to save charges in case of importing goods in the US. In the next part, you can check out the common and vital mistakes people make and end up giving extra charges.
Common Mistakes That Result In Elevated Custom Duty
If you can import something to the US anytime soon, check for the mistakes, you must not make. Have a look below:
1. Negligence With Paperwork
Negligence with paperwork can lead you to pay more custom duty to import a commodity in the US. You must always put accurate data on each entry. Moreover, keep all the papers in the correct order. Avoid paper misplacement as it can result in you getting your goods late.
2. Incorrect Calculation Of The Landed Cost
Often, you might pay more custom duty due to mistakes in the landed cost amounts. Therefore, always take the responsibility of calculation on yourself. However, remember that most companies claiming themselves to be professionals make mistakes.
While you calculate the landed costs, include the shipping, shipping interest, order’s value, and import taxes costs. Moreover, you must check for all other expenses like GST, VAT, and other taxes.
Always try to take the suggestions from an expert person if you are importing any goods for the first time. Consider him to show you the right approach to handling an import in the US.
Final Words
Not all businesses in the US need to import products. Nevertheless, if you need to import commodities, try to save the excess custom duty. Expect most of your hassle to be solved if you do the paperwork correctly.
The best you can do is gather all the accurate information regarding the customs. You can also try creating a rapport with a person who has proper knowledge about everything.