Trade Strategy & Risk Mitigation Tariff Terms
Explore key tariff and trade terminology related to trade strategy & risk mitigation. Our comprehensive definitions provide clarity for importers, exporters, and trade professionals.
Bonded Warehouse
A secure facility where imported goods can be stored without payment of duty until they are released.
Country of Origin Labeling (COOL)
Requirements for labeling the origin of products for compliance with trade regulations.
Decoupling (Trade)
The deliberate reduction of economic interdependence between countries, often through tariffs or bans.
Duty Drawback
A refund of customs duties, certain taxes, and fees collected upon importation when the imported goods or materials derived from them are subsequently...
Free Trade Zone
A designated geographic area where goods may be landed, stored, handled, manufactured, or reconfigured without being subject to import duties. Duties ...
Friendshoring
The practice of relocating supply chains to countries with shared values and political alignment.
Nearshoring
Moving production or sourcing closer to a company's primary market to reduce costs and risks.
Origin Criteria
The conditions that a product must fulfill to be considered as originating in a particular country.
Quota System
A system that limits the quantity of certain imports allowed into the country within a time period.
Reshoring
Bringing manufacturing and production back to the domestic market from overseas.
Rules of Origin
Criteria used to define where a product was made and are important for implementing trade measures such as tariffs and quotas.
Supply Chain Diversification
The practice of sourcing goods from multiple countries to mitigate tariff and geopolitical risks.
Tariff Engineering
The legal practice of designing, configuring, or manufacturing products in a way that allows them to qualify for lower duty rates while maintaining th...
Tariff Quota
A two-tiered tariff system that imposes a lower tariff rate on imports up to a certain quantity and a higher rate on quantities that exceed the quota.
Tariff Rate Quota (TRQ)
A trade policy tool that combines two policy instruments: quotas and tariffs, allowing a set quantity of specific products to be imported at a lower t...
Transshipment
The practice of shipping goods through a third country to avoid tariffs or trade restrictions.
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