Five Compliance Best Practices For … Minimizing Customs Tariffs (Part I)

As an accompaniment to our "What Every Multinational Should Know" biweekly series, below find an update to our "Five Compliance Best Practices" series, which provides quick-hit advice for multinational companies to implement best practices and to enhance their compliance programs and internal controls.

Minimizing tariffs is a common objective for businesses engaged in international trade, as tariffs can significantly impact the cost of importing or exporting goods. Here are several strategies businesses can consider to minimize tariffs.

1. Duty Drawback. A duty drawback is a refund or remission of a customs duty, fee, or internal revenue tax previously imposed. The refunds occur when the product is exported from the United States or destroyed. Duty drawback programs allow businesses to claim refunds or credits for duties paid on imported inputs that are exported or incorporated into exported products. This is a complex process, as it involves imports and exports,