Manufacturers of digital signage hardware aren’t the only ones finding creative ways to lower the customs value of their imports into the USA. In some cases, the declared import value can be reduced by as much as 20 percent.
Crisis times are consulting times—and major consulting firms are currently working overtime to help large corporations develop creative tax strategies to ease the impact of Trump’s new punitive tariffs. According to a Financial Times report (paywall), companies are finding inventive ways to lower the reported import value of their products by as much as 20 percent.
Consultants say the key is to reduce the customs duty assessment base as much as the law allows. Two valuation strategies are especially popular:
- Structuring contracts with suppliers to allow importers to legally declare the original sales price—before any markups by intermediaries.
- Splitting payments to suppliers into two parts, with only one subject to tariffs. For example, the importer might apply a discount to the taxable goods and separately provide marketing funds that are not subject to tariffs.
Large companies could also lower the declared price of imported goods and separately pay tariff-free license fees for patents or other usage rights.
