Every dollar saved on duty fees is a dollar you can reinvest in your business. Here are five proven strategies to minimize duties and maximize your profitability.
- Leverage Free Trade Agreements:
Many SMEs miss out on reduced tariffs offered by agreements like CUSMA or CPTPP. Start by checking if your goods qualify for reduced duties and ensure the correct Certificates of Origin are included with your shipments. - Optimize HS Code Classifications:
The Harmonized System (HS) code you use determines how much duty you pay. Double-check classifications for accuracy—incorrect codes can mean paying higher rates or facing compliance issues. - Choose Cost-Effective Shipping Methods:
Combine smaller shipments into fewer, larger consignments to save on duties. Use AI-driven tools to model scenarios and identify optimal routes or logistics providers. - Automate Documentation to Avoid Errors:
Manual paperwork is error-prone and costly. Automated solutions ensure forms like invoices, declarations, and packing lists are filled out accurately and on time. - Explore Duty Drawbacks:
If your business imports goods and re-exports them after value addition, you may be eligible for a duty drawback—a refund on the duties paid initially. Familiarize yourself with refund-eligible scenarios and streamline the process using tech tools.
By implementing these strategies, SMEs can achieve significant savings and increase competitiveness. Platforms like CustomsSage simplify the process, allowing you to focus on growth without sweating the details.