Tuesday, November 29, 2011

Programs to Reduce your Duties

The United States offers a number of special duty reduction programs for products that originate from certain countries. Each of the programs requires that the good originate from beneficiary country. If the good was imported into the beneficiary country then the material must be "transformed" by a process or manufactured into a product of that country. Transformation is where things get a bit gray, contact an expert to determine if and how a good can be transformed.

Value Requirements:
The amount of value to be added consists of:
1. the materials produced in the beneficiary country
2. the direct costs of processing operations performed in the beneficiary country

Documents Required:
Most duty reduction programs require a certificate of origin and basis for qualifying under the program. It must be filed with each entry of goods into the U.S.

Some examples of Duty Free Reduction Programs:

The U.S.-Australia Free Trade Agreement
The U.S.—Israel Free Trade Area Agreement
he North American Free Trade Agreement

Happy Importing :)

2 comments:

  1. explained the Importing
    process with a great effort so its a nice visit over here reading a informative paragraph

    ReplyDelete
  2. Thank you Martin. My intentions are to make things as concise and easy to understand as possible for my readers who are not familiar with International Trade.

    ReplyDelete