Custom Duties

Helping you navigate the vast complexity in cross-border trade

International trade trends
For the last decade, international trade has been an ever increasing part of many business operations. One of the reasons of this upward trend is production for many products in North America are sourced around the world. Customs and Border Protection (CBP) in the U.S .handled approximately $2 trillion worth of annual imports and approximately $400 billion by Canada Border Services Agency (CBSA) in Canada. As a result of globalization, expanded free trade and widespread tariff reductions, North America’s trade will continue with the world trading pattern and the volume of imports will remain strong.

Custom duties and tariff issues
Custom duties and tariff issues have become more complex, with changing international trade regulations and compliance requirements. Some of the issues include:

  • The classification and valuation of goods for custom purposes
  • The rules and documentation underlying preferential trade agreements
  • The implementation and administration of duty relief regimes
  • The elimination of custom duties on many types of materials and components

Many companies importing goods may not have the resources and expertise to review their numerous trade transactions. Sometimes, even a reliable custom broker may not fully understand your business operation and the use of a particular product or component. Understanding and overseeing the variety of taxes and duties can be a challenge. Overpayment of unnecessary duties can result in lost profit and can put your company in a competitive disadvantage.

Custom duties review
Certified Customs Specialists (CCS) at GRS have successfully recovered substantial amounts of custom duties overpayments for its clients. Our experienced professionals are proficient in minimizing your company’s import duties. Our comprehensive duty review can benefit your company in many areas including:

  • Duty drawback
  • Reviewing international trade agreements
  • Applying NAFTA exemptions
  • Applying for advance rulings
  • Duty re-classification

Duty re-classification

All goods imported into the United States and Canada must be classified in a particular section and chapter of the Harmonized Tariff Schedule of the United States (HTS) and the Harmonized System (HS) of Canada. The particular tariff classification of an individual product will determine the applicable rate of customs import duty. Tariff Classification of imported goods requires not only examining the harmonized tariff schedule and tariff codes, but also reviewing the chapter notes of the (HTS) and the (HS).

Tariff Classification is a highly complex procedure. GRS can help your company navigate through the intricacies involved in the administration of custom duties.

Duty drawback program

The duty drawback is an incentive program that is designed to stimulate exports and manufacturing. It allows companies to receive refunds of customs duties paid on imported products that are subsequently exported or destroyed. A company can receive drawback refunds on duties paid by their domestic suppliers even if the products were purchased in the United States or Canada. Despite this tremendous potential for savings, custom authorities estimated that 78% of $3 billion of qualified duty drawback goes unclaimed each year in the U.S. and Canada.

Eligibility of duty drawback
Many companies are unaware that they qualify for substantial duty drawback refunds. Any company that exports or destroys products that were imported or made from imported components or materials may qualify. Even if a company is not the direct exporter or importer of record, it may still qualify for refunds.
Let GRS help your company determine whether your import/export activities qualify for any duty related refunds.