Navigating Tariff Management With NetSuite

In the complex landscape of global trade, organizations face unprecedented challenges in navigating international markets. Tariffs have emerged as a critical factor influencing economic strategies, supply chain considerations, and operational costs. As international trade becomes increasingly unstable, organizations should review ways to manage cross-border commerce effectively.

Recent macroeconomic projections underscore the volatility of global trade. J.P. Morgan forecasts U.S. gross domestic product (GDP) growth at 2.1% for 2025, with more pronounced economic challenges expected for Mexico, Canada, and China due to tariff exposure.1 This economic backdrop highlights the pivotal need for robust tariff management tools.

Understanding Tariffs

Tariffs are government-imposed taxes levied on imported goods, serving multiple purposes:

Protecting domestic industries from foreign competition
Generating revenue for national governments
Regulating the flow of international trade

For businesses, tariffs represent more than just an additional cost—they are a complex variable that can affect pricing strategies, profit margins, and competitive positioning.

How NetSuite Can Help With Tariff Management

NetSuite provides intelligent automation features to help manage the cascading intricacies of tariffs. Tariff management in NetSuite can help organizations handle complex international trade and customs-related pricing and tax calculations. Here are several key features:

Tariff Code Management: Allows users to define and manage specific tariff codes for products. These codes help classify goods for international shipping and customs. In addition, users can associate specific Harmonized System (HS) codes with inventory items.
Landed Cost Calculation: NetSuite can automatically calculate additional costs associated with importing goods. These include duties, taxes, shipping, insurance, and other related expenses, helping assemble an accurate total cost of imported goods.
Customs & Duty Tracking: The system can track tariff rates and duty percentages for different countries and product categories. It supports the real-time calculation of custom duties during purchasing and sales stages to help facilitate cost management.
Integration With Purchasing & Sales: Tariff codes can be automatically applied during purchase orders and sales transactions. This provides transparency in cross-border business operations and can help organizations comply with international trade regulations.
Reporting & Analysis: NetSuite can generate reports on tariff-related costs and expenses and help organizations make informed decisions about global supply chain management.

Example

A manufacturing company importing electronic components can:

Automatically apply accurate HS codes
Calculate precise landed costs
Generate detailed reports on tariff-related expenses
Make data-driven decisions about sourcing and pricing

Technology-Enabled Supply Chain Benefits

Leveraging technology, especially cloud-based systems like NetSuite, can help organizations adapt to tariff changes by providing global visibility and data for decision making. This includes sourcing materials from different countries, moving operations, or finding alternative materials. A flexible, tech-enabled supply chain can help avoid excessive fees and improve overall efficiency. Here are some key benefits:

Global Visibility & Data-Driven Decision Making: Cloud-based systems provide inclusive global visibility and support data-driven decisions.
Adaptation to Tariff Changes: Technology helps businesses adapt to tariff changes by sourcing materials from different countries, moving operations, or finding alternative materials.
Efficiency & Cost Avoidance: A flexible, tech-enabled supply chain can help you avoid excessive fees and improve overall efficiency.
Resilience: Leveraging technology is crucial for mitigating the effects of tariff wars and maintaining a resilient supply chain.
User Support: NetSuite offers extensive user guides, release notes, and a self-service site called SuiteAnswers to help users expand their use of the platform.

How Forvis Mazars Can Help

As global trade becomes increasingly complex, technology-driven solutions like NetSuite’s tariff management features can help bring certainty to specific aspects of your business. By deploying intelligent automation to help manage international trade costs, NetSuite can enable your operations professionals to navigate today’s global trade environment with precision.

To start deploying robust tariff management tools at your organization, connect with a professional at Forvis Mazars today.

Forvis Mazars is a certified Oracle NetSuite partner offering software implementation, integration, and consulting services, in addition to two premier program options:

NetSuite Solution Provider – Helping your business get up and running with its own suite of NetSuite modules
NetSuite Business Process Outsourcing (BPO) – Helping fast-growing startups and small and midsize organizations supercharge their business management with outsourcing services

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