In the spirit of the holiday season, where the magic of Christmas is often tied to the joy of giving, businesses can unwrap a different kind of gift by delving into the world of customs duty savings. Just like Santa carefully plans his route to deliver presents around the world, companies can strategically navigate customs regulations to maximize their return on investment.
This Christmas, businesses can unwrap a unique gift – MyTower Global Trade Management (GTM) SaaS solution. Just as Santa's elves streamline the process of preparing gifts for the world, MyTower GTM help companies automate the management of their trade programs and maximize legally the duty savings they are entitle to.
Free Trade Agreements: Opening the Door to Savings
Imagine if Santa had to pay a duty for every present he delivered. The cost could be astronomical! Similarly, businesses can benefit from Free Trade Agreements (FTAs), which allow goods to be imported at zero percent duty or reduced duty rates. However, the path to duty-free bliss is like a complex web that requires careful navigation.
Businesses must meet specific criteria, such as rules of origin, to qualify for FTAs. Automating the comprehensive analysis of these agreements can be a game-changer, potentially saving companies millions of dollars. Just as Santa checks his list twice, businesses need to ensure they comply with the intricate administrative obligations tight to the gift of FTA duty savings.
With MyTower Origin SaaS solution, businesses can navigate the complex web of Free Trade Agreements (FTAs) effortlessly and have a robust compliance foundation to claim their legitimate duty savings.
Duty Recovery: Turning Setbacks into Opportunities
Sometimes, Santa's presents don't always find the right home. Similarly, businesses might import goods, pay duties, and later face a need to reject or not use those items. Duty recovery comes to the rescue. Depending on national legislation, companies can re-export or destroy unused goods and recover paid duties. Overpayments can also be reclaimed.
The amount recoverable depends on various factors, such as the type and value of goods, duty rates, and import volumes. Being informed about duty recovery options transforms setbacks into opportunities and becomes a valuable commercial benefit for businesses.
Duty Suspension: Creating Cashflow Magic
Just as Santa efficiently manages his resources during the busy Christmas season, businesses can optimize their cashflow through duty suspension. This strategy allows the delay or suspension of duty payments, providing real benefits to businesses.
Various scenarios, like temporary imports for specific purposes or storing goods in a bonded warehouse, enable businesses to suspend duty payments until goods are sold into the market. These options, while not easily granted, offer significant advantages in terms of cashflow optimization. To qualify, businesses must meet specific criteria and maintain good compliance – which often is a challenge when missing in house customs knowledge and resources.
Much like Santa manages carefully its resources during the bustling Christmas season, MyTower GTM help companies simplify the cumbersome administrative reporting requirements of those customs regimes, reduce significantly the workload and optimize their cashflow through duty suspension. The potential benefits make the automation of trade programs management worthwhile, turning duty suspension into a valuable tool for businesses.
Whether importing goods temporarily or utilizing bonded warehouses, inward our outward processing reliefs as well as other customs regimes, MyTower guides businesses to qualify for duty suspensions scenarios and provide an agile tool for cashflow optimization.
In conclusion, this Christmas season, businesses can embrace the spirit of giving by unwrapping the gift of duty savings. Just as Santa's meticulous planning ensures a seamless delivery of presents, consider sharing the secret of customs planning strategies as a unique and valuable present for your business.
Written byDelphine Neveux
Vice President Global Trade Management @MyTower