What Happens If You Abandon Your Goods at Port?
Experts say it’s a ‘nuclear option’ in a tariff war. Here’s what to know if you’re considering it.
With tariffs hitting 50 percent or more for more than a dozen countries as part of President Trump’s ongoing trade war, a group of small-business owners on Reddit have been wondering if it would be more economical to simply abandon imported goods once they’ve reached U.S. shores.
While it may be tempting to simply walk away, experts we spoke to say it’s a bad idea. “You are still responsible for the goods,” says Lisa Anderson, a Claremont, California-based supply chain consultant. The title for the goods might transfer to the importer at different points during the shipment’s journey from a foreign factory to an American distribution center. But in many cases, the importer will be legally and financially responsible for the goods by the time they arrive at port.
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Importers have to affirmatively act to abandon goods—otherwise, the goods will go through the normal Customs process and the importer will be responsible for storage and other fees. You may be able to reject a shipment and have it returned to a sender within 30 days of its CBP entry date. But time is not on an importer’s side. By the time goods arrive, it may be too late to start the abandonment process, Gamalski says.
The real cost of abandoned goods
Gamalski cautions that abandoning goods is expensive and could ultimately cost a company its importing rights—not to mention the financial and reputation costs that might come with breaking contracts. Often, you’re better off negotiating with your suppliers for a discount to offset the tariffs. You’d also be better off if you can sell the products to someone who will pick up the items from the port directly, Anderson says.
Read the full article at Inc.com
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