KPMG report: Preparing for 2022, year-end cost savings and trade compliance considerations
A KPMG report concerning year-end housekeeping for importers and exporters, and trade compliance considerations.
Preparing for 2022, year-end cost savings and trade compliance considerations
As the final days of 2021 approach, year-end housekeeping for importers and exporters is expected to focus on strategies to lower customs duty spend, increase available cash-flow, and enhance compliance with trade laws to avoid undue enforcement attention and negative publicity.
This focus is particularly important in the current global trade environment, which is characterized by persistently high U.S. tariffs, global supply chain disruptions, heightened compliance scrutiny by governmental authorities, and increased emphasis on environmental, social and corporate (ESG) governance.
Higher tariffs—such as the “Section 301 tariffs” imposed on imported goods of Chinese origin and “Section 232 tariffs” on global imports of steel and aluminum—continue to increase costs for many businesses, with the auto, manufacturing, agricultural, technology, solar, and retail industries bearing the brunt of the upsurge. As a result, planning discussions need to consider ways to blunt the impact of Section 301 and Section 232 tariffs through potential duty/cost mitigation strategies, including how to potentially reduce, and compliantly report, the customs value (i.e., tariff basis) of imported goods.
At the same time, authorities have noticeably ramped up enforcement on both imports and exports. Thus, companies need to continue to evaluate whether internal processes sufficiently identify and mitigate associated compliance risks.
Read a December 2021 report [PDF 184 KB] prepared by KPMG LLP: Preparing for 2022, year-end cost savings and trade compliance considerations
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