International trade is an important component of the New Hampshire economy. Overseas markets enable companies to diversify their customer base, increase productivity, and remain competitive.
The Department of Business and Economic Affairs (BEA) is the central resource for businesses assessing the effects of tariffs, offering mitigation strategies and other ways to minimize the impact. For more specialized information, BEA recommends consulting with an expert, such as a licensed customs broker, on specific situations and questions.
Planning Ahead
It's not too early to plan and prepare for the effects of tariffs.
- Monitor tariff developments.
- Optimize product classifications and tariff codes to identify cost-saving opportunities.
- Take steps toward supply chain diversification and seek alternative sources of imported products, including in countries with reduced tariff exposures or through onshoring.
- Implement financial protection strategies, which can include inventory optimization and reviewing pricing strategies or cost reduction opportunities.
Diversifying Supply Chain
Diversifying key manufacturing sources is one of the best ways to become resilient to policy changes and natural disasters or reduce costs. New Hampshire companies have access to a national Supplier Scouting program through the New Hampshire Manufacturing Extension Partnership (NHMEP). This free service through its national network to any manufacturer looking to identify U.S.-based supply chain options to help find alternative sources of inputs. Contact Brian Knapp at NHMEP to learn more.
Duty Drawbacks
A duty drawback is a refund process where some tariffs, taxes, and fees can be reimbursed if imported goods are exported without being changed or destroyed. Businesses can file for drawbacks through a customs broker or can do so themselves through U.S. Customs and Border Protection.
Stockpiling
Many New Hampshire companies are stockpiling and holding extra inventory as a strategic approach to tariffs. Increasing orders of imported products now can build up a supply before new tariff rates are in place. This can help mitigate the immediate impact of tariffs and enable companies to keep prices stable, but it can also add to storage costs.
Using a Foreign Trade Zone
Foreign Trade Zones, such as New Hampshire’s Zone 81, which covers all or part of nine of the state’s 10 counties, provides an opportunity to defer or eliminate duties on imported merchandise. In a Foreign Trade Zone, duties are not required until the imported product enters the customs territory of the United States. Imported products can be manufactured and then re-exported or stored for a time without paying for tariffs.
Other Resources
Tariff information, including any exclusions or exceptions, are published in the Federal Register, the journal of the U.S. Government. Additionally, information on tariffs on imports into the United States are published in the Harmonized Tariff Schedule.
For more information, contact Adam Boltik, program manager of BEA’s Office of International Commerce, or a local Business Resource Specialist who can also assist.