Understanding the Real Cost of Importing Furniture
Sam McClure | Director of Compliance and Customs Services at CV International
Steve Foder | Founder/CEO of Customs Services and Solutions (representing
Gulfstream Shippers Association)
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NOTE: The information below was generated using AI.
Quick Recap
The meeting focused on discussing tariffs and trade policies affecting the furniture industry, with industry experts Sam McClure and Steve Foder providing insights on various topics. The speakers emphasized the importance of correct tariff classification, accurate country of origin declaration and proper shipment value reporting, while also highlighting the rapidly changing nature of the current trade environment. The discussion covered specific tariff rates, bond requirements, exemptions and the complexities of determining country of origin, concluding with information about upcoming industry events.
Summary
Furniture Industry Tariffs and Trade Policies
The meeting focused on discussing tariffs and trade policies affecting the furniture industry. Industry experts Sam McClure and Steve Foder were present to provide insights. Gene Clark introduced the topics to be covered, including the role of importers of record, tariff impacts on furniture components and packaging, compliance issues and cost comparisons. Sam began by expressing appreciation for AHFA and the opportunity to work with Gene and Steve. The webinar attracted 142 participants, and questions were addressed at the end of the presentation through the chat feature.
Importer of Record Responsibilities
Sam discussed the responsibilities and liabilities of being an importer of record, emphasizing the importance of correct entries, timely duty payments and record-keeping. He highlighted the recent changes in tariffs, particularly those affecting imports from China, and explaind how these changes are impacting duty rates and bond requirements. Sam also mentioned upcoming changes, such as the elimination of the $800 de minimis for China imports and new exclusions to IEEPA tariffs. He stressed the rapidly changing nature of the current trade environment and advises importers to stay informed and prepared for potential bond adjustments.
Common Compliance Mistakes in Importing
Steve discussed common compliance mistakes and future challenges in importing. He emphasized the importance of correct tariff classification, accurate country of origin declaration and proper shipment value reporting. Steve warned against illegal transshipping practices and stresses the need for good communication with customs brokers. He explained the risks and benefits of being a direct importer and highlights the challenges of predicting future trends in the rapidly changing tariff landscape. Steve advised importers to carefully vet new suppliers, especially when shifting production to different countries, and to stay informed about anti-dumping and countervailing duties. He concluded by emphasizing the importance of adaptability and strong partnerships with brokers and freight forwarders in navigating the current unpredictable import environment.
Tariff Discussion and Bond Requirements
Steve and Sam discussed the 125% tariffs and there effective date. Sam clarified that the tariffs are already in effect and is based on the date the entry is filed, with an exception for goods that left prior to April 5th. Gene asked about the bond requirements, and Sam explained that it should be 10% of the duties paid over a year. Steve shared his experience with bond companies, noting that they now require more financial information and have stricter underwriting requirements. The meeting also touched on the 10% tariff rate for countries other than China and the possibility of exemptions for certain shipments.
Tariffs and Trade Regulations Explained
The meeting covered various aspects of tariffs and trade regulations. Gene moderated the discussion, with Sam and Steve providing expert insights. They explained that USMCA-eligible products are exempt from additional tariffs as well as the complexities of determining country of origin, especially for products partially manufactured in multiple countries. They clarified that the new 10% global tariff begins on July 9th based on arrival date. They also addressed the interaction between Section 232 tariffs and the new reciprocal tariffs, noting that full exemption from reciprocal tariffs only applies if 100% of a product's value is subject to Section 232 duties. The session concluded with information about upcoming AHFA events.
Next Steps
- Importers to review their customs bond amounts and communicate with their brokers about potential increases due to higher tariff rates.
- Importers to carefully vet new suppliers when shifting production to other countries to avoid transshipment issues.
- Importers to consult with customs brokers or attorneys for specific country of origin determinations when sourcing from multiple countries.
- Importers to consider requesting binding rulings from U.S. Customs for complex country of origin or tariff classification issues.
- Interested parties to register for upcoming AHFA events: Logistics Conference (June 16-18), Regulatory Summit (August 20-21) and Marketing/PR Conference (August 27-28).