Key Takeaways:
- Have a clear understanding of entire supply chain – from where merchandise originates to where it is assembled or manufactured
- Gather and analyze transactional data to understand the financial impact of tariffs
- Review the customs triangle levers: tariff classification, country of origin, and value reported to customs
- Manage the tension between transfer pricing and customs valuation, as these both work in opposite directions
- Consider the long-term strategy of relocating manufacturing taking in factors such as: cost savings, labor rates, and potential free trade agreements
- Consider ethical sourcing and sustainability issues, such as compliance with forced labor prevention laws and environmental impact regulations
- Companies without in-house expertise to address complexity of global customs and trade issues may need to seek outside advisors with specialized knowledge to ensure informed strategic decision-making from both a legal and tax perspective
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