Different Players
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
Contact us If you are looking to start an import/export business one of the first things you must understand are the different kinds players. Understanding what each of these different players do is essential to running a successful import/export business. Sure, there are importers and exporters but there are many variations on the main theme. Today we will focus on three different players – an export management company (EMC), export trading company (ETC), and import/export merchants. EMC: These guys handle export operations for any domestic company that wants to sell its product overseas but is unsure how to do so. An EMC can do everything from hiring dealers, invoicing your customers, communicating with distributors and representatives, handling advertising and marketing promotions, overseeing marking and packaging, arranging shipping, and much more. These guys basically do it all. EMCs typically specialize by product, foreign market, or both. ETC: While EMCs are taking care of all of the merchandising to sell and focusing on seeking out buyers, an ETC is a bit different. They attack the other side of the trading coin. ETCs usually specialize in identifying what foreign buyers want to spend their money on and then they hunt down domestic sources willing to export. ETCs will often times take title to the good and sometimes they work on a commission basis. Import/Export Merchant: This is somewhat of a generic title that basically identifies a person who is an international entrepreneur that has no specific client base and does not specialize in any one industry or line of products. Instead this person purchases goods directly from a domestic or foreign manufacturer and then packs, ships, and resells the goods. Unlike an EMC, an import/export merchant assumes all risks as well as profits. Understand how each of these players differ and you will be in much better position to make those big business decisions going forward. For more information on the import/export industry, stay tuned on our blog.
Mitigating the Impact of Tariffs
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
Importers and exporters within the United States are looking for ways to mitigate the impact of recent tariffs that have been levied on hundreds of billions of dollars’ worth of goods. Though policy changes seem to be continuously changing month to month, there are ways to avoid or reduce duties. Below are a few strategies that companies can use to work around these duties. Businesses can request to exclude specific products from the tariffs through the Department of Commerce and the Office of the United States Trade Representative. In order to do this, businesses must explain how and why their imported goods are critical to the United States economy. When a convincing case has been made, the request has been approved. Beforehand, businesses need to review the exclusions granted on List 1-3 to determine if their own imports are covered. Businesses can shift operations away from one country to another to escape duty increases. Essentially, businesses should change the imported product’s country of origin. For example, the United States Customs and Border Protection has found that the complex assembly of numerous parts, modules, or subassemblies into dedicated machines results in a substantial transformation of the components so that their country of origin is where the finished product was produced. This might be an expensive and difficult change, but it could result in saving on increased tariffs. Businesses can file for duty drawback. This is probably the most effective way to get back money from these tariffs. Using resources like those offered from Dutycalc can help businesses get a refund of up to 99% of duties and fees paid on imported goods. Use these strategies to help mitigate the impact of tariffs. For more information on anything regarding the import and export industry, please reach out to us here at Dutycalc.
