Issuing free trade certification and claiming free trade benefits inherently results in a compliance risk. However, with proper management, these risks can avoid becoming potential or actual liabilities.
For most companies, the ultimate objective of free trade product certification is avoiding tax, usually, customs duties, and other taxes and fees such as the US merchandising processing fee. Most free trade agreements are set up under self-certification procedures where producers issue free trade certificates and importers claim free trade benefits without prior approval from regulatory authorities. However, if authorities perform after-the-fact audits and find unsubstantiated or incorrect certification, penalties and retroactive duties with interest can result.
The key to benefiting from lower tax – while avoiding liability – is to prevent errors and material omissions and manage compliance risk. However, given free trade's complexity, that is easier said than done.
How PwC can help
PwC can bring you seasoned free trade experience and OriginCompliance™ automation, which will provide a standardized and simplified certification process that applies origin rules under multiple free trade requirements. Our origin professionals will help maintain the program and keep its field-by-field validation tables and content up-to-date with changes to rules of origin.
OriginCompliance™ will help you respond successfully during a regulatory audit and optimize your free trade benefits with less likelihood of retroactive duty assessments, penalties and customer dissatisfaction.
Contact us today to help you automate and improve your origin processes.