The ongoing tariff wars have created an atmosphere of unrest for many businesses. Although it may be tempting for employees to panic, it’s important to remember that there are solutions to rising tariffs.
Foreign Trade Zones (FTZs) can be a bastion of hope for businesses who are suffering from rising rates, tariff wars, and uncertain trade politics. Our team has broken down some of the ways that our FTZ Division can help you start developing a strategy to save money.
It’s easy to see a trade war on the horizon and begin shutting down operations to account for it. However, while this is often the first response, it doesn’t necessarily make this the right response.
Tariff rates can be devastating for a business that deals with parts from international suppliers. In order to stay afloat, take a moment to ask yourself these questions:
• What methods have I been using to ship products from all over the world into our facility?
• Are there strategies within an FTZ structure that allow me to save money?
If you don’t know the answer to the second question, keep reading.
Reduce and Avoid Tariffs
The tariffs your business is suffering from are not unavoidable. When you work with an FTZ, you can begin to address your methods and find room for improvement.
For example, a company may be creating a component out of several other pieces. If those pieces are shipped to the FTZ Division at STEWART Industry, we can sort through these pieces and only find ones that meet quality requirements. The rest are then destroyed, so you don’t need to pay import taxes on these items.
Additionally, these components can be assembled in our FTZ, which means they never truly enter the country until they are a finished component. That component may receive lower tariff rates than the individual parts. Once it is imported, the business will only pay the rate on the finished component, and not on the individual parts. This process can save massive amounts of funds and allow businesses to operate more comfortably.
Develop an Ongoing Strategy
Tariff wars and trade agreements can be unpredictable. That’s why it’s important to work with a Foreign Trade Zone division to develop solutions that are specific to your business.
At STEWART Industries, we work with you to provide a customized quote of how your business can save on an individual part. Then, once you are onboarded, our team will continue to provide you with value-savings initiatives.
We split cost savings with our customers, which means that we are only as successful as we make you.
Are you interested in learning more about how our FTZ Division can help your business? Request a quote today to get started.