Tariff Navigation: Your Questions Answered

• Under EXW (Ex Works), the buyer bears almost all costs and risks.
• Under DDP (Delivered Duty Paid), the seller takes on maximum responsibility.

What immediate steps can help mitigate the financial impact of tariffs?

Most importantly, negotiate your shipment rates and take advantage of the lower market demand. Customers also need to follow best-practice logistics processes, optimizing container fill by shipment consolidation and port rationalization.

Should we set up an overseas entity to manage imports more efficiently?

Setting up an overseas entity could allow you to pay duty based on cost price rather than sale price, which can offer significant savings. But this is a long-term move that involves regulatory, tax, and operational overhead. While shipping prices are coming down, warehousing costs are high in the US.

A proper feasibility assessment is essential.

Does the point of dispatch influence how tariffs are applied?

No, tariff assessments are tied to the country where goods are produced or undergo substantial transformation—not necessarily the country they ship from.

Is there flexibility in how goods are classified for customs purposes?

Classification must always align with the legal definitions under the Harmonized System. There may be room for correction or optimization if current codes are inaccurate, but misclassification carries significant compliance risks.

Can import timing service manage exposure to changing trade costs?

Delaying a shipment can be advantageous if tariffs decrease, particularly if goods are not yet en route. However, once goods arrive at a terminal, detention and demurrage charges can become expensive.

Could domestic sourcing be a more resilient and cheaper option?

Are there mechanisms to postpone duty payments without halting inventory?

Bonded storage allows for deferral of duties until goods are formally released into the market, but does still need to be paid when goods entre free circulation. Bond can be a valuable tool for both cash flow and inventory planning. Bonded warehouses are usually suitable for expensive products which would incur high amounts of tax and not go into free circulation directly.