In this episode of the International Trade Resource Podcast, host Kim Kirkendall chats with Emmet McGovern, a seasoned trade compliance expert about the often-overlooked but critically important world of importer liabilities and risks. Together, they unpack the role of the Importer of Record, explaining how legal responsibility for declaring goods, paying duties, and maintaining accurate documentation ultimately falls on whoever is listed as IOR. Listeners will gain clarity on why simply relying on your supplier or freight forwarder isn’t enough to shield you from potential penalties.

They then dive into the nuts and bolts of what it takes to stay compliant—everything from choosing the right customs bond (single-entry vs. continuous) to declaring the full ten-digit HTS code, proper valuation of your goods (including assists and tooling fees), and correctly stating the country of origin. Real-world examples of tariff-circumvention schemes, such as undervaluation tricks and transshipment fraud, bring home just how costly even small errors can be.

Next, Kim and her guest walk through best practices for audit preparedness and recordkeeping, emphasizing the five-year retention requirement for documents and they list critical ones for you. They also discuss foreign sellers acting as the Importer of Record or under DDP terms. Finally, listeners are armed with proactive strategies to transform customs compliance from a risk into a competitive advantage.

Key Takeaways:

• Who is legally responsible for accuracy of customs documents and payment of duties.
• The importance of HTS codes and all valuation components.
• How to do self-audits, and prepare for a customs audit.

Episode Sponsors:

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Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

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Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

In this episode of the International Trade Resource Podcast, host Kim Kirkendall chats with Diego Montemayor, a seasoned trade compliance expert with over 15 years of global market experience. They dive deep into the sometimes confusing world of country of origin determination—especially when components are sourced, partially assembled, and finished across multiple jurisdictions. Diego lays out the fundamental tests U.S. Customs relies on, from the “substantial transformation” standard to the complementary value‑based analysis, helping listeners understand when and how a product’s origin truly changes ​.

Together, Kim and Diego unpack real‑world scenarios—like a 3D scanner whose electronic modules come from China but undergo welding, software installation, and housing assembly in Mexico—to illustrate how technical complexity and percentage‑of‑value calculations interplay in a COO decision. They also explore landmark rulings, including a flashlight case where pre‑configured components failed the transformation test, and the Harley‑Davidson EU dispute over tariff‑avoidance motives.

Wrapping up, Diego shares best practices for shoring up your COO position: from assembling detailed bills of materials and process documentation, to performing rigorous value‑add analyses and seeking advance customs rulings when in doubt. He warns of common pitfalls—over‑reliance on supplier claims, insufficient paperwork, and jurisdictional nuances—that can leave companies exposed to enforcement actions and unexpected duties​.

Key Takeaways

• Begin every COO assessment with the substantial‑transformation test; escalate to value‑based analysis when complexity or ambiguity arises
• Maintain a “COO file” with bills of materials, processing step descriptions (e.g., welding, software installation), supplier invoices, and logical rational
• Conduct supplier due diligence and consider binding rulings to lock in your origin position and demonstrate “reasonable care” to customs authorities ​
  
  
  

Episode Sponsors:

If you liked this episode - Buy Me a Coffee - it’s a great way to help us cover the out of pocket costs. LINK: https://www.buymeacoffee.com/kimkirkendall

Acclime China:

https://china.acclime.com/

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: intltradepodcast@gmail.com

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

In this episode of the International Trade Resource Podcast, host Kim Kirkendall chats with international trade expert Alejandro Alcalde as they dive into additional valuation strategies and explore fresh opportunities amid an ever-evolving tariff.

Their conversation builds on prior discussions about first sale valuation and takes a deep dive into other options, including the use of free trade zones and bonded warehouses. Listeners will gain insights into how strategically delaying the import process by utilizing these zones can offer relief from duty and tax obligations—at least temporarily—as companies navigate unpredictable tariff fluctuations.

In addition, Kim and Alejandro unravel the nuances of special customs provisions, particularly under chapter 98 of the U.S. tariff schedule. They discuss how various scenarios, such as the handling of returned goods, repair and alteration processes, and even the strategic use of U.S. goods assembled abroad, can be leveraged to reduce costs and optimize operational flows.

Kim and Alejandro also emphasize the critical importance of detailed documentation, robust traceability systems, and close coordination with customs brokers to ensure compliance with ever-changing regulations. Tune in to learn how these advanced valuation strategies can help companies better manage risk and optimize their international trade operations.

Key takeaways:

• The benefits and strategic considerations of using free trade zones and bonded warehouses to delay duty and tax payments.
• An overview of special customs provisions under chapter 98, including processes for returned goods and repair/alteration scenarios.
• Insights into the complexities of U.S. goods assembled abroad and the importance of maintaining country-of-origin status through proper documentation and operational planning.
• Practical advice on ensuring traceability and aligning with compliance requirements in a volatile tariff environment.

Episode Sponsors:

If you liked this episode - Buy Me a Coffee - it’s a great way to help us cover the out of pocket costs. LINK: https://www.buymeacoffee.com/kimkirkendall

Acclime China:

https://china.acclime.com/

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: intltradepodcast@gmail.com

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.