Introduction: Billions in Savings, Mostly Unclaimed
The United States currently maintains free trade agreements with 20 countries, each offering reduced or zero-duty rates for goods that meet the agreement’s rules of origin. Collectively, these agreements offer importers access to duty savings that can completely eliminate the tariff burden.
And yet, a substantial portion of eligible imports enter the United States without claiming preferential treatment. Some importers do not know their goods qualify. Others lack the certificates of origin needed to claim the preference. Still others are deterred by the complexity of the rules of origin.
Free trade agreement consulting closes these gaps by analyzing your import portfolio, conducting origin analysis, preparing documentation, and ensuring your customs entries claim the correct preferential rates.
Overview of Active U.S. Free Trade Agreements
USMCA with Canada and Mexico is the largest and most utilized FTA, providing duty-free treatment for the vast majority of qualifying North American goods. CAFTA-DR covers Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Bilateral FTAs with Australia, Bahrain, Chile, Colombia, Israel, Jordan, South Korea, Morocco, Oman, Panama, Peru, and Singapore each provide preferential treatment for qualifying goods.
Each agreement has its own rules of origin, documentation requirements, and administrative procedures. What qualifies under one agreement may not qualify under another.
Identifying Opportunities in Your Import Portfolio
Begin by mapping imports by country of origin. Prioritize by duty savings potential, focusing on products with the highest MFN duty rates. Consider products that might qualify with supply chain modifications. Do not overlook products that undergo substantial transformation in an FTA partner country.
Building a Sustainable FTA Compliance Program
Establish origin determination procedures applied consistently to new and existing products. Implement supplier management practices to ensure you have necessary certifications. Train your customs broker on FTA compliance procedures. Monitor for changes in agreements and rules of origin. Prepare for verification by maintaining organized, accessible documentation.
Peacock Tariff Consulting helps importers identify, qualify for, and capture every available preferential tariff benefit across your entire import portfolio.
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