FTA Duty Savings
Estimate benefits from Free Trade Agreements.
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The Strategy of FTAs and PTAs
Free Trade Agreements (FTA) and Preferential Trade Agreements (PTA) are international treaties that reduce or eliminate trade barriers, such as import duties. By sourcing goods from countries with which your nation has an active FTA, you can dramatically improve your landed cost competitiveness.
The Verification Process:
- Rules of Origin (ROO): Goods must be "wholly obtained" or undergo "substantial transformation" in the partner country.
- Certificate of Origin (COO): A mandatory document issued by authorized bodies in the exporting country to validate the FTA claim.
- MFN Comparison: Comparing against 'Most Favored Nation' (MFN) rates helps justify the complexity of FTA compliance.
This calculator helps in the feasibility phase of sourcing to determine if the logistics of FTA compliance are offset by the tax savings. Professional importers use these metrics to build resilient, cost-effective global supply chains.