Page 82 - IAADFS Summit of the Americas 2025 Special Issue

INSIDER

Will tariffs impact duty free and travel retail shipping?

Miami-based logistics infrastructure company WTDC was founded by the Gazitua family in 1977 as Miami’s first
General Order Warehouse, although the family was already running a successful freight forwarding business called
Florida International Forwarders (FIF) at the time of WTDC’s founding. Over the years, WTDC added additional
services such as bonded warehousing, customs brokerage, and transportation licenses and is a recognized market
leader worldwide. Sean Gazitua, son of the founder and the current president & CEO of WTDC, shares his insights
and concerns about the current state of supply chain issues and how his company is dealing with them.

As president and CEO of a worldwide to cease the flow of fentanyl into the U.S.
logistics company and foreign trade zone, At the time of publishing, these tariffs
it is imperative that I stay informed of were scheduled to go into effect. New or
global events that could affect customers. returning tariffs are scheduled or being
Thus far in 2025, United States tariffs have proposed for aluminum, steel, automobiles,
been a pivotal factor in international trade copper, lumber, pharmaceuticals, and
and commerce. Let’s take a closer look at semiconductors, among others.
what effect those tariffs may have on the U.S. Foreign Trade Zones, such as
Duty Free and Travel Retail industry from WTDC, assist companies with mitigating
a logistics perspective, the U.S. tariffs that tariffs by allowing goods to be imported,
have been introduced or implemented this stored, processed, or assembled without
year, and how companies are using Foreign immediately incurring customs duties.
Trade Zones to defer duties and taxes. FTZs are secure areas under U.S. Customs
Duty Free and Travel Retail products and Border Protection (CBP) supervision
moving through the U.S. in-bond will not and are considered outside CBP territory.
be subject to duties and taxes. However, Sean Gazitua, President and CEO, WTDC FTZs have streamlined customs
companies that have a global travel retail documentation and procedures, reducing
division and also a domestic U.S. operation went into effect. The goal of the tariffs paperwork and improving the time it takes
will feel the impact of duties on imported is for Chinese officials to halt the flow to bring cargo from the port or airport into
products and materials for consumption in of chemicals from China that are later the FTZ.
the U.S. This may lead to decisions for the manufactured into illicit drugs such In an FTZ, companies can defer,
importer to either absorb the tariffs, pass as fentanyl. China, in turn, announced reduce, or even eliminate tariffs on
along the increases, or find suppliers from retaliatory duties scheduled to go into effect goods that are re-exported or used in
different countries. in March. During the last week of February manufacturing. WTDC has tailored its
Tariffs, or customs duties, are a tax 2025, an additional round of 10% was operation to meet the unique needs of
paid to the government by the importer. being discussed by the U.S. the Duty Free and Travel Retail industry,
Commonly used to balance trade by Over the past month, numerous tariffs allowing for the flow of foreign products to
protecting local industries, tariffs make have been introduced or implemented. U.S. be handled in Miami without the importer
imported goods more expensive in order to President Trump has expressed an interest subject to duties and taxes, as all cargo
stimulate spending on domestic products. in placing a tariff on all imported products. for this industry is export-only. WTDC
Tariffs can also be used to stimulate Tariffs have been introduced then revoked also manages worldwide transportation of
revenue, combat unfair trade practices, based on a country’s willingness to fall in products in-bond so as not to be subject to
such as when a country subsidizes line with his immigration policies, as in duties and taxes.
production of a product, or be wielded to the case of Colombia. Mexico and Canada I welcome any questions you may
influence accordance with policy as we will see 25% tariffs implemented after have about trade, tariffs, and logistics. We
have seen so far in 2025. a one-month delay on March 4th, with hope you have an amazing Summit of the
On February 4, a 10% tariff on Canadian energy imports at a 10% tariff, Americas and hope to catch you on the
all Chinese goods imported to the U.S. as the administration seeks cooperation exhibition floor!

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