Case Study
Sec. 301 exclusion takes sting out of import duties
Customs broker identifies unlikely provision— brings shipper relief with $185k tariff refund!
Embark on a tale of financial resurgence with Eastern Shipping Worldwide's Customs Brokerage expertise. In the realm of Crop Production & Farming, where rising transportation costs loomed large, Eastern's intervention proved transformative. Through meticulous Duty Exemption & Processing and Tariff Code Classification, Eastern uncovered an unprecedented provision, delivering a staggering $185k tariff refund to the farming company. Witness the power of strategic partnership as Eastern alleviates financial strain, setting the stage for renewed prosperity in the face of global challenges.
SERVICES
- Eastern CHB, LLC* Customs Brokerage
- Duty Exemption & Processing
- Tariff Code Classification
INDUSTRY
Crop Production & Farming
COMPANY DESCRIPTION
The profiled company provides sustainable product solutions to support the agricultural industry. Their products serve organic crop producers, socially conscious farmers, and urban food gardeners.
Challenge
For years, the company had been providing a portfolio of products to support a niche agricultural market in the U.S. They focused on providing sustainable farming solutions to family-owned farms, vineyards, and urban growers. The burgeoning market proved to be an expanding segment for the company as they enjoyed thriving product demand and steady profits.
But as more recent events began to impact the shipping industry, the company was feeling the sting of rising transportation costs. Importing the components needed for manufacturing their products created a steady stream of added duties. The extra costs grew to be an unrelenting expense in getting their goods to market.
In fact, the compounding costs became so exorbitant that the company seriously began to wonder how their business could adapt to the industry chaos. With their profits being dramatically eroded, would they need to streamline operating costs? Or would they need to raise pricing to their customers? Although neither of these scenarios were desirable, all options were on the table.
Solution
Fortunately, the brokerage team at Eastern recommended a comprehensive review of the tariff code classification for the affected goods, as well as a review of all duty exemptions. Through the review process, Eastern CHB identified two provisions associated with the agriculture sector and horticultural goods. The provisions allowed for substantial exclusions and duty-free privileges that had not been previously identified.
Results
To the company's delight and relief, multiple entries were approved for refunds! Not only did this mean they could recoup $185k in duties that had already been paid out of pocket in just the past year, it also provided assurance of saving on future entries.
“This is great news! YES, these items are definitely certified for agricultural or horticultural use. Thank you SO much for finding this!”
— President/CEO, Profiled Company