While I was researching material to create an article for my blog. I found an interesting and highly ranked article the “Options for avoiding section 301 duties on Chinese-origin goods.” While this article does a great job of explaining different ways to postpone the payment of these duties, the title is misleading.
In my opinion, a more illustrative and correct title should have been “Options for postponing section 301 on Chinese-origin goods.” The article goes on to explain different ways from requesting a “ Product exclusion” to “Temporary Admission”, all the options provided at one point or another to you, as an importer, will be subject to the payment of these duties or payment of penalties if not close properly; the article goes on to explain in detail different ways to postpone.
Below, I present you 6 options for avoiding Section 301 duties:
- Product exclusion provides you with an option to request an exemption for payment. You can use this if your product has been excluded from the list or request an exclusion. If your product is not excluded, you are responsible for the payment of duties.
- A Bonded warehouse, you can deposit your goods in such warehouse and store it for up to five years. But when enter for consumption duties must be pay. Changing country of origin, as many importers currently are experiencing is very difficult to change reliable, cost-efficient, and consistent suppliers.
- Taking advantage of Free Agreements is a great way to avoid payment of these duties. Recently the U.S. has adopted a position that to exclude your products from this, your finished goods MUST go thru a substantial transformation. That is a high standard to meet.
- Duty drawback is a great vehicle to request a refund of your already paid duties when you export your goods outside of the U.S.
- Foreign trade zones, an excellent vehicle to postpone indefinitely the payment of duties.
- Temporary Admission is allowed for articles to be repaired, altered, or processed. Under this program, your articles must be exported within a period of time in order to avoid penalties.
I have written a couple of articles in my blog describing how to take advantage of programs to legally avoid payment of these duties under very specific circumstances; one of these programs is the magnificent “Section 321”.
Contact us to avoid paying these fees or general information about customs.