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Tariffs

The duty savings already inside your ONESOURCE investment, and how to unlock them

Thomson Reuters Tax & Accounting  

· 6 minute read

Thomson Reuters Tax & Accounting  

· 6 minute read

Highlights

  • FTZ, FTA, and duty optimization tools extend the ONESOURCE platform you already run, using the same classification data.
  • Companies overpay an estimated 3% to 8% of import duties industry-wide because of classification and qualification errors.
  • ONESOURCE Trade Analyzers let you model FTA and FTZ scenarios with your own shipment data before making sourcing decisions.

 

You already trust ONESOURCE with your import and export management or your product classification. That’s the hard part. The compliance foundation is in place, the data is flowing, and your team has adopted the system. But here’s the part most compliance teams don’t realize: the same investment that’s keeping you compliant today is also the fastest path to duty savings you haven’t claimed yet.

Foreign trade zone (FTZ) management, free trade agreement (FTA) qualification, and duty optimization tools aren’t a new vendor relationship or a system you’d build from scratch. They’re extensions of the ONESOURCE platform you’re already running, built on the same classification data, the same supplier records, and the same compliance discipline you’ve already established. Every quarter you wait to activate them is a quarter of duty paid that didn’t need to be.

Here’s where the money is likely sitting, and how to go get it.

Jump to ↓
If you’re a manufacturer or high-volume importer: Foreign trade zone management


If you source from a complex supplier network: Free trade agreement management


If you’re a finance leader watching landed cost: Duty optimization tools


What is waiting costing you in duty savings?


Find your next duty optimization opportunity

 

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If you’re a manufacturer or high-volume importer: Foreign trade zone management

Section 232 tariffs on steel and aluminum currently sit at 50% for most countries, with copper at 25%, and those rates keep shifting as other tariff authorities work through legal challenges. For manufacturers importing components before assembly or re-export, that’s not an abstract policy story. It’s a direct hit to landed cost, and it’s made foreign trade zone programs a board-level conversation instead of a back-office one.

FTZs let you defer, reduce, or eliminate duty on qualifying inventory — a real cash-flow and margin lever, not just a compliance formality. Companies running manufacturing FTZs can use duty inversion to pay the lower rate on a finished product rather than the higher rate on its imported components. One automobile manufacturer used exactly this approach to save $250 million in duty in a single year. Our ONESOURCE Foreign Trade Zone Management solution manages more zones than any other provider (4 times as many as the next competitor) and has helped customers save more than $1 billion collectively.

If you’re already using ONESOURCE for classification or entry management, the product and inventory data FTZ qualification requires is largely data you already have. That means the heaviest lift, connecting product data to duty rules, is already done. What’s left is turning on the reporting and compliance layer, the software configuration itself, not a new data-collection project. If you don’t yet have FTZ Board and CBP approval for a zone, that regulatory process runs on its own timeline, separate from this step.

If you source from a complex supplier network: Free trade agreement management

If your supply chain touches multiple countries, some of them almost certainly qualify for preferential duty treatment under USMCA, CPTPP, RCEP, or an EU agreement. The problem isn’t that FTAs don’t apply to you. It’s that claiming them requires soliciting origin certificates from dozens or hundreds of suppliers, tracking validity dates, and defending every claim if customs comes asking. Most companies don’t have the infrastructure to do that at scale, so they leave preferential rates unclaimed rather than risk a rejected claim.

That gap is expensive. Companies overpay an estimated 3% to 8% of total import duties industry-wide due to classification and qualification errors, including missed FTA claims. Georgia Pacific’s Myesha Cottom saw what closing that gap looks like in practice: automating FTA qualification cut the company’s annual revalidation season from 5 months down to 1 or 2.

Our ONESOURCE Free Trade Agreement Management solution uses the same classification data already powering your ONESOURCE deployment, so qualifying products and generating certificates of origin doesn’t mean starting a parallel data project.

If you’re a finance leader watching landed cost: Duty optimization tools

Across FTZ, FTA, and scenario modeling, ONESOURCE brings these levers together under ONESOURCE Global Duty Optimization, a single network for duty suspension and minimization programs, spanning FTAs and FTZs to IMMEX and EU customs regimes.

Compliance directors increasingly own duty spend as a line item finance is watching closely, and every optimization idea gets tested against the same question: does this add audit risk? ONESOURCE Trade Analyzers were built for exactly that tension.

ONESOURCE Trade Analyzers let you model different trade lanes, sourcing countries, and FTA or FTZ scenarios side by side, using your own shipment data, so you can see the duty impact of a decision before you make it, not after customs flags it.

ONESOURCE Import Management calculates landed cost in real time and flags cost and expense discrepancies as they happen. ONESOURCE Entry Verification identifies duty overpayment after the fact, including cases where first-sale valuation could have lowered your dutiable value but wasn’t applied at the time of entry.

The common thread: none of this is a new vendor relationship or a new compliance framework. It’s the same audit trail and the same platform discipline you already rely on, pointed at savings instead of just risk. For a finance leader who has to defend every cost-reduction idea to an audit committee, that’s the difference between a risky shortcut and a documented, repeatable process.

That confidence isn’t incidental. It’s built on the same standard behind Fiduciary-Grade AI™, Thomson Reuters’ bar for high-stakes professional work, where every output has to be grounded in authoritative content and defensible enough to put in front of an auditor, not just generated.

What is waiting costing you in duty savings?

As the compliance director, you’re the one who has to answer for duty spend efficiency, and “we didn’t have time to look into it” isn’t an answer finance wants to hear twice. The 3% to 8% industry-wide overpayment rate tied to FTA classification and qualification errors is a reasonable starting point for sizing your FTA exposure specifically, but the more useful number is the one specific to your full import history across FTZ, FTA, and duty optimization combined. A short whitespace assessment against your own ONESOURCE data, run with your account team, will tell you where you stand.

Find your next duty optimization opportunity

See what your own ONESOURCE data says about your FTZ, FTA, and duty optimization exposure. Explore ONESOURCE FTZ Management, ONESOURCE FTA Management, and ONESOURCE Global Duty Optimization, or start a free trial of ONESOURCE Analyzer Suite to see the savings a scenario model would surface for your business.

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