With the possible imposition of new tariffs on goods from Canada, Mexico and China — and the further risk of retaliatory tariffs — our national supply chains are in a state of disruption. To address this developing situation, Cherry Bekaert is advising its clients on the following topics:
Onshoring and Reshoring Manufacturing Facilities
Creating manufacturing facilities in the United States can reduce logistics costs to market and offer significant financial and tax incentives that offset initial investments and ongoing operating costs. This strategy requires planning and early engagement with our advisors.
Foreign Trade Zone
Businesses may be able to set up an FTZ to avoid paying import duties on products that are re-exported later, delay paying duties or pay no duties on scraps resulting from the manufacturing process.
Negotiated Local, State and Federal Incentives
The opportunities for businesses to engage with authorities before site selection decisions is vast, with many nuances and lessons learned. Our team engages with clients to evaluate cities, counties and states while optimizing the full picture.
Port Incentives
Many states offer incentives and credits for an increase in port activities, such as port grants in Virginia and South Carolina and a port bonus credit in Georgia.
International Tax and Transfer Pricing Work
Moving offices, distribution facilities and manufacturing locations can trigger changes in an organization’s international tax structure and internal transfer pricing.
Profitability (Re)work and Analysis
Changes in supply chains naturally force changes in distribution, pricing and profitability. To get the right operating information, we are helping clients to upgrade their reporting systems.
Corporate Development and Strategy
Mergers and acquisitions (M&A) and joint ventures can be a source of supplier diversification to avoid and minimize tariffs–as well as new distribution and end-consumers. We assist with strategic channel analysis, capital structure optimization and competitor synergy/acquisition targeting work. Furthermore, our strategy team assists clients with new pricing strategies and elasticity studies, competition effects and customer value studies to help react to new supply chain costs in their marketplace.
Build America Buy America (BABA) Certification
As manufacturing and accompanying material suppliers move into the United States to avoid tariffs, clients may achieve the 65% BABA certification domestic content threshold. BABA certification is mandatory for the Federal government contracting supply chain, provides preferential treatment in other competitive situations and provides the potential for federal, state and local financial assistance for certain infrastructure projects. We assist clients with certifications to provide to customers and other compliance requests.
Let us assist and be your guide forward.
