The Why & How on the Path to Free Trade Agreements

Introduction

Leveraging preferential programs requires a multi-layer approach

Free Trade Agreements (FTA) and other preferential programs are a two-headed beast: for almost every business, they can bring substantial benefits through duty reductions and offer strategic competitive advantages. They also create new compliance risks and bring added competitive pressures to the market.

This e-book will illustrate and lay down the path to reap the rewards of FTAs, while maintaining full compliance with the regulations around them.

We begin by answering this simple question, “Why do I need to be concerned about FTAs?”, then help you understand more about the adoption criteria and associated risks of preferential agreement utilization. And finally, your to-do list for joining the small club of companies already harvesting the benefits from FTAs.

Why does it matter?

Money!

Why would you want to pay a tax when you don’t have to? It seems simple, however the challenges to leveraging an FTA are the rules and documentation required for eligibility. What’s more, you can even go back up to five years to claim previously paid duty.

How much can you save?

Amber Road has supported countless global organizations in their assessment and application of preferential programs in various trade lanes. There isn’t a “one-size fits all” method to calculate your potential savings. A quick assessment of the steps below can give you an idea.

• Identify all your trade lanes (country-to-country) and the goods moving in each one.
• How much is paid in customs duties?
• Is there an FTA or preferential program in place which cover your products.
• Not sure? Read how our software can do it!

There are over 600 free and preferential trade agreements around the world. With companies paying tens to hundreds of millions in import customs duties every year, there is a missed opportunity to improve margins by reducing costs which flow to the bottom line!