Exporter Dealing with 301 Duties

Case Study

An importer of more than $25 million in goods annually was hit with substantial “section 301” duties and turns to JMR for help.

Client

A leading supplier of graphite products and carbon additives throughout North America.

Challenge

An importer of more than $25 million in goods annually with a significant export customer base was hit with substantial “section 301” duties following their imposition in 2018. The products had been entirely duty-free, and as such, a sudden 25% duty became a substantial detriment to their profitability and threatened the business’s survival. In addition, because of the duty-free products, they had never sought ways to reduce or get refunded duties when JMR contacted them as a potential candidate for duty drawback.

    Solution

    Upon examination of not just the articles subject to the 25% China duties but their entire supply chain, JMR found that they exported roughly 85% of their duty-paid imports to Mexico and, as such, were eligible to be claimed for refund under unused direct identification drawback. J.M. Rodgers obtained access to their A.C.E (Automated Commercial Environment) data and worked with the client to create systems to capture the data and documents needed to file a drawback. Getting a complete picture of their data from a few sources initially proved a challenge for the client. Still, with JMR’s expertise in making data work, our development team captured everything needed to file all the necessary paperwork and data to obtain refunds.

     

    Results

    By setting up an unused direct-ID NAFTA duty drawback program for the client, J.M. Rodgers helped them claim several million dollars in China duties, which was a matter of survival. The impact of these new tariffs was dramatically lessened on the customer’s bottom line, so they faced much fewer adverse effects from the new expenses.

    Repairs & Returns

    Repairs & Returns

    Client Aerospace division of a multinational corporation specializing in repairsChallenge A potential customer approached J.M. Rodgers about filing for duty drawback. They were importing aerospace parts duty-paid, repairing them, then exporting them. Unfortunately,...

    Parts Dictionary Improves Efficiency & Compliance

    Parts Dictionary Improves Efficiency & Compliance

    Client An importer of products related to the retail industry.Challenge  The client worked with a Customs broker for many years who, due to institutional knowledge, had familiarity with their products. However, a year of exceptionally high turnover caused a loss of...

    Section 301 Tariff Exclusions

    Section 301 Tariff Exclusions

    Client Vacuum cleaner and floor care product manufacturing company.Challenge  In 2018, the US imposed additional tariffs on certain imports from China, known as Section 301 tariffs. The US Trade Representative's office implemented a tariff exclusion process to exempt...

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    J.M. Rodgers Co., Inc. is a family-owned and operated business with a rich tradition of serving and providing unparalleled support to our valued customers. In operation since 1952, J.M. Rodgers Co., Inc. is a recognized leader in global logistics specializing in Customs Brokerage, Freight Forwarding, and Duty Drawback.

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    Find Out If You Qualify For Duty Drawback

     If you or your business imports and export goods to and from the United States, it’s possible that  you may qualify for duty drawback, which is a 99% refund on goods imported into the United States that are subsequently exported. Even if you don’t do both, you may still be able to qualify as long as importing and exporting happen along your supply chain.