{"id":2722,"date":"2025-07-28T13:24:55","date_gmt":"2025-07-28T07:54:55","guid":{"rendered":"https:\/\/insight.thomsonreuters.in\/business\/?p=2722"},"modified":"2025-07-28T13:49:32","modified_gmt":"2025-07-28T08:19:32","slug":"mastering-tariff-compliance-series-part-1-minimising-the-impact-of-tariffs-using-onesource-free-trade-agreements-ftas","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.in\/business\/posts\/mastering-tariff-compliance-series-part-1-minimising-the-impact-of-tariffs-using-onesource-free-trade-agreements-ftas","title":{"rendered":"Mastering tariff compliance series Part 1: Minimising the impact of tariffs"},"content":{"rendered":"\n<p>This blog post is the first in a series of four, examining product solutions that can help specialists and strategists master tariff compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-black-color has-text-color has-link-color wp-elements-70c9da94e83b471be100527e10019544\">Highlights:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tariffs are creating uncertainty for companies doing business with the U.S.<\/li>\n\n\n\n<li>Free Trade Agreements (FTAs) can help minimise the impact of tariffs<\/li>\n\n\n\n<li>ONESOURCE Free Trade Agreement Management software enables companies to identify FTA opportunities and manage compliance<\/li>\n\n\n\n<li>The software provides data-driven insights and automates trade compliance workflows<\/li>\n<\/ul>\n\n\n\n<p>President Donald Trump\u2019s levying of <a href=\"https:\/\/tax.thomsonreuters.com\/blog\/tariffs-101-for-tax-professionals\/\"><strong>tariffs<\/strong><\/a> is creating massive uncertainty for companies that do business in or with the United States. The inability to know how things will progress makes it extremely difficult to put strategies in place to mitigate or avoid adverse impacts.<\/p>\n\n\n\n<p>As a result, organisations are seeking tools that give them the flexibility to quickly respond to change, minimise added costs across their business and supply chains.<\/p>\n\n\n\n<p>One tool that can help lessen the impact on costs and complexity is <a href=\"https:\/\/www.thomsonreuters.in\/en\/products-services\/global-trade-management\/onesource-free-trade-agreement.html\"><strong>ONESOURCE Free Trade Agreement (FTA) Management<\/strong><\/a>, a software solution that enables corporations to identify opportunities to qualify goods under FTA-specific <strong><a href=\"https:\/\/tax.thomsonreuters.com\/blog\/how-can-businesses-take-advantage-of-the-rules-of-origin-to-lower-their-customs-duties\/\">rules of origin<\/a><\/strong> and manage compliance with those agreements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-black-color has-text-color has-link-color wp-elements-aa0ee2823f3d8b1ed57e38fe042890e8\">The importance of free trade agreements in minimising tariff impact<\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-medium-font-size\">\u201cFree trade agreements can limit the negative impact or minimise what the tariff is going to be,\u201d says Karen Lobdell, Senior Manager, Product Management at Thomson Reuters.<\/p>\n<\/blockquote>\n\n\n\n<p>\u201cIt won\u2019t eliminate the tariff impact, because most of the tariffs with President Trump, at least to date, have had no exemptions and no exceptions. They\u2019re going to apply across the board when they\u2019re implemented. But if there is a free trade agreement currently in place, that agreement will limit the pain when it comes to cost by providing a lower baseline tariff as the starting point.\u201d<\/p>\n\n\n\n<p>For example, the Trump administration may put an additional tariff on South Korea, but a free trade agreement with that country will lessen the impact. The goods under the agreement may qualify for a zero-duty rate, and when the 25 percent tariff is added, the duty increase is 25 percent. However, if the underlying product had a duty rate of 10 percent without the FTA, when the 25 percent tariff is added, companies are looking at a 35 percent duty rate.<\/p>\n\n\n\n<p>That 10 percent savings can really add up for companies of all sizes, so it\u2019s more imperative than ever that companies examine the source of origination for the items in their supply chains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-black-color has-text-color has-link-color wp-elements-e2943ed0e1a5e8c7a999d6560fef1ef0\">Identify opportunities to qualify goods under FTA-specific rules of origin<\/h2>\n\n\n\n<p><strong><a href=\"https:\/\/www.thomsonreuters.in\/en\/products-services\/global-trade-management\/onesource-free-trade-agreement.html\">ONESOURCE Free Trade Agreement Management<\/a><\/strong> can help organisations uncover those free-trade opportunities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Its unique architecture can accommodate any existing, changing, or future free trade agreements, including USMCA, CFTA, SFTA, AFTA, ILFTA, JFTA, UKFTA, CAFTA, and TAFTA, among others, covering a wide range of bilateral and multilateral free trade agreements across the globe. Users can indicate which specific agreement(s) they\u2019re currently taking advantage of, as well as those they are interested in exploring.<\/li>\n\n\n\n<li>The accurate application of FTAs allows companies to attain a competitive advantage and maximise profit through reduced customs duties. FTA savings, utilisation rates, and other key analytics are easily tracked through user-defined dashboards. Automated alerts and notifications simplify the process of supplier solicitation and certificate management. And with a standardised ERP interface, automating an FTA compliance workflow becomes faster and more efficient.<\/li>\n\n\n\n<li>Supplier Certificate of Origin Validation provides suppliers with a secure portal where a bill of material (BOM) analysis can be performed without disclosing confidential cost information to the importer. Once the analysis is complete, only the results and supporting documentation are shared, enabling easier and more accurate information exchange between parties to confirm qualifying goods.<\/li>\n\n\n\n<li>For organisations looking to quickly identify the most strategic opportunities across their trade operations, ONESOURCE FTA Analyser provides clear, data-driven insights. In addition to the FTA Management solution, Analyser helps teams uncover where the greatest savings potential lies\u2014making it an ideal tool for guiding strategy, building internal business cases, or validating ROI assumptions before scaling further.<\/li>\n\n\n\n<li>It delivers analytics and up-to-the-day reports highlighting which sourcing countries, trade lanes, and trade agreements offer the greatest return on investment \u2013 based on your organisation\u2019s actual trade data.<\/li>\n\n\n\n<li>Like all ONESOURCE products, it\u2019s based on Thomson Reuters deep and trusted content, encompassing the rules, regulations, and data that underpin global trade compliance. As tariffs and agreements evolve, the system is updated within 24 hours, ensuring that every scenario and recommendation reflects the most current regulatory landscape.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-black-color has-text-color has-link-color wp-elements-99ffa5635984ffd6e691e942e6e5b7e4\">Reduce supply-chain costs by taking advantage of FTAs<\/h2>\n\n\n\n<p>Once opportunities under free trade agreements have been identified, <strong><a href=\"https:\/\/www.thomsonreuters.in\/en\/products-services\/global-trade-management\/onesource-free-trade-agreement.html\">ONESOURCE Free Trade Agreement Management<\/a><\/strong> equips companies with all the tools needed to act on them. It reduces compliance risks by streamlining trade compliance workflow, eliminating manual work, and ensuring adherence to the latest regulatory changes.<\/p>\n\n\n\n<p>Automation is key; Free Trade Agreement Management automates processes such as soliciting suppliers to get the component build and costs, comparing standard duty rates with preferential rates, and filing entries and Certificate of Origin with customs authorities. A built-in audit trail documents diligence and provides the necessary evidence if proof of FTA qualification is ever requested.<\/p>\n\n\n\n<p>ONESOURCE FTA Management enhances compliance monitoring through Thomson Reuters system-based document retention, making verification faster and easier. It also continuously tracks and updates the FTA origin status of products to ensure ongoing accuracy. In addition, the solution also streamlines the creation of Certificates of Origin for customers when needed.<\/p>\n\n\n\n<p>While ONESOURCE Free Trade Agreement Management is designed to maximise savings, it also integrates a wide range of data sets \u2013 such as risk indexes and partner government agency information, to deliver a more holistic view of tariff compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-black-color has-text-color has-link-color wp-elements-9a9e5b6e276c79fcb824e1b0ee9bd36f\">Face an uncertain geopolitical future with confidence<\/h2>\n\n\n\n<p>In a time of uncertainty\u2014uncertainty that may soon extend to opportunities available under free trade agreements\u2014corporations must be able to quickly evaluate every option to <strong><a href=\"https:\/\/tax.thomsonreuters.com\/blog\/how-to-save-money-in-your-supply-chain\/\">reduce costs across products and supply chains<\/a><\/strong>. ONESOURCE Free Trade Agreement Management offers a practical and proven way to do just that.<\/p>\n\n\n\n<p>Learn more about how <strong><a href=\"https:\/\/www.thomsonreuters.in\/en\/products-services\/global-trade-management\/onesource-free-trade-agreement.html\">ONESOURCE Free Trade Agreement Management<\/a><\/strong> and ONESOURCE FTA Analyser can help your organisation minimise the impact of tariffs and unlock greater trade efficiency.<\/p>\n\n\n\n<p>At Thomson Reuters, we understand that navigating the complexities of tariff compliance in global trade requires a multifaceted approach. While no single solution can address every challenge associated with tariffs, our <strong><a href=\"https:\/\/www.thomsonreuters.in\/en\/products-services\/onesource.html\">suite of products<\/a><\/strong> is designed to address the most critical areas effectively. Free Trade Agreement Management is just one of the many tools available to help you stay ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Donald Trump\u2019s levying of tariffs is creating massive uncertainty for companies that do business in or with the United States. The inability to know how things will progress makes it extremely difficult to put strategies in place to mitigate or avoid adverse impacts.<\/p>\n","protected":false},"author":5,"featured_media":2732,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[693,681,694],"tags":[767],"insight_job_role":[982],"insight_practice_area":[782],"class_list":["entry","author-traus","has-excerpt","post-2722","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-continuity","category-global-trade-supply-chains","category-global-trade-strategy","tag-global-trade","insight_job_role-head-of-trade-compliance","insight_practice_area-global-trade","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mastering Tariff Compliance 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