Global Fastener News

Danielle Riggs, Director of International Trade Compliance at Würth Industry of North America, is no fan of U.S. President Donald Trump’s tariffs or the retaliatory tariffs they’ve spawned from other countries.

“We are not deliberative (with tariffs) anymore,” Riggs told the Pac-West Fastener Association. “There is a process. We should have followed it.”

“Normally you find your injury, you file a case with the World Trade Organization, and they investigate,” Riggs explained to attendees of Pac-West’s autumn meeting in Whitefish, MT. “Currently, we have skipped the WTO and done our own investigation under 232, which is like the fox guarding the henhouse.”

The manner in which we’ve gone about this is hurting the process, Riggs stated.

“The manner and the method of how we are doing things (tariffs) today is so out of whack. It’s causing problems not just in this country but around the world.”

Initial Section 232 tariffs on steel and aluminum applied to 100 part numbers at WINA, Riggs noted. Subsequent rounds of Section 301 tariffs on Chinese goods (if enacted) would push the part numbers facing tariffs to 40,000 at her company.

“If the July 11 301 list of $200 billion goes into effect, it will impact 90% of products WINA imports.”

Fastener companies needing to identify potential tariff impacts on their products should identify their tariff codes under the Harmonized Tariff Schedule (HTS).

“Don’t rely on your broker” Riggs advised. “Either ID your products in-house or with a verified third part.”

It’s important to read all the info relating to your products, including addendums and foot notes.

“Classification is art, not a science.”

Secondly, determine your products’ Country of Origin.

“Proving country of origin becomes critical in the world of tariffs,” Riggs emphasized.

Customs brokers generally are not responsible for the accuracy of information on import documents, meaning that the certificate of origin included in the documentation is not sufficient for U.S. Customs, which requires mill certs documenting.

“Proving country of origin is the bane of my existence,” Riggs said. “Nobody has mill certs that connect a product to its raw material sources.”

In addition, Riggs advised companies to access the federal Automated Commercial Environment (ACE) system to determine how your products will be impacted by tariffs. The ACE system lets importers see what Customs sees by displaying everything you claimed in your import documents.

All import documents must be in English, she pointed out.

If your products are being impacted by tariffs, Riggs advised reviewing all product classifications to ensure they are correct.

“You need to have an educated and experienced tariff specialist in your business. This is where you will save money on tariffs. There are (third party) services that can also help you do it.”

Also, she encouraged companies to explore their supply base for products unaffected by tariffs.

And finally, a fastener company can file for exclusions from the Commerce Department (some customers require this before they allow you to pass along duty).

But even that process is fraught with uncertainty, Riggs noted.

“There is no rhyme or reason as to why exclusions are sticking or not sticking.” Web: Pac-West.org