Sec 301 Tariffs –
You are undoubtedly behind the eight-ball if you are just starting your mitigation efforts, but it’s never too late.
So far there are three tranches of the Section 301 Tariffs and a rumored 4th. The first two offered opportunities for companies to file a request for exclusion of their goods, and there will be a third exclusion process you can take advantage of. By doing so, you’ve got nothing to lose. Make your voice heard! Remember though, the number one reason exclusion requests fail is because the petitioner failed to show that the product under consideration could only be procured from China. Specifically, the petitioner failed to show that the product couldn’t be made elsewhere.
The administration likely doesn’t care that you’re heavily invested in China. Their unrealistic expectation that you would just stop doing business there was just that… unrealistic. Business is like a huge cargo ship… It doesn’t stop and turn on a dime.
So now you’re left holding the bag… How are you going to mitigate these tariffs? You could tool-up in another country and avoid them altogether, but many of your hardcore products likely require trained workers to assemble your products and training new workers takes time and investment. You could wait it out, but the experts simply just don’t know when these tariffs will end.
So, what mitigation weapons remain at this point?
Maple Creek employs a forensic, hands-on, comprehensive approach to international trade development ultimately providing you the opportunity to anticipate legal issues before they become an issue. Global trade compliance is strategic, we help our clients assess areas of vulnerability, remove avoidable costs, minimize risk and foster international trade development. See our blog on Reasonable Care and let us know how we can help.