Legally minimise US tariffs

Professor Dr Juhn, what is your assessment of the trade dispute with the USA from the EU's perspective? Will it be resolved; with what compromises? The transatlantic trade conflict is a tough geopolitical struggle - and anything but resolved from the EU's perspective. The USA has been pursuing a protectionist agenda for years, for example by imposing additional tariffs on steel, aluminium and technical products. Even under President Biden, little has changed in this basic approach. Europe, on the other hand, is focussing on multilateral solutions, which makes it more difficult to reach an agreement. Export-oriented sectors such as mechanical engineering, automotive and high-tech are particularly affected and often face the additional challenge of complex supply chains. SMEs face a double challenge: they have less negotiating power and resources than large corporations, while at the same time any additional levy hits them particularly hard. A return to free trade is not to be expected in the short term. This makes it all the more important to make targeted use of legal leeway to reduce tariffs now. How can German companies legally reduce customs duties, anti-dumping levies and trade barriers - without being targeted by customs investigators? One tried-and-tested approach is the "first sale for export": here, tax is not paid on the last transaction price, but on an earlier, more favourable price within the supply chain. Prerequisite: The sale must be explicitly intended for export and between independent parties. The clean separation of intangible services from the value of goods, such as software licences or development costs, can also legally minimise customs costs. Other levers are optimised transfer prices, correct classification of products in the customs tariff and contractually cleverly drafted purchasing conditions. Important here: documentation, transparency and close coordination between tax and customs experts. Only then will the measure remain legally compliant and economically effective. In your opinion, which strategies for customs value reduction have proven to be particularly effective - even for medium-sized companies with limited resources? A pragmatic, prioritised approach is particularly worthwhile for medium-sized companies. The "first sale rule" is often the biggest lever here, especially for regular exports to the USA. Although the effort involved in providing evidence and drafting contracts is not insignificant, it is usually justified in relation to the potential savings. Splitting the value of goods into dutiable and non-dutiable components is also relatively easy to implement, provided there is clear documentation. We also recommend checking existing purchase prices and contractual conditions for customs-relevant aspects. This is because every price reduction lowers the transaction value and therefore automatically reduces the customs burden. These measures can often be implemented without extensive restructuring and quickly pay off. Do you anticipate a long-term burden from US tariffs? What do you recommend companies do with regard to their supply chains or purchasing strategies? The current tariff burden will be with us for some time. Companies should therefore not view customs-related issues in isolation, but rather integrate them into their overall supply chain strategy. Those who diversify their sources of supply or production locations, for example, can make targeted use of free trade agreements or tariff preferences. Setting up duty-free zones, consignment warehouses or bypass locations outside the USA can also make sense - but only in conjunction with tax, legal and logistical aspects. In short: proactive organisation today can secure competitive advantages tomorrow. (mns)