Trade adjustment tool aids exporters in navigating global commerce shifts
KPMG's Tariff Modeller: A Powerful Tool for Navigating Global Trade Complexities
In the ever-evolving landscape of global trade, businesses are constantly seeking tools to help them stay ahead. KPMG's Tariff Modeller is one such tool, designed specifically for organisations engaged in global trade and supply chain planning.
This proactive, analytical tool offers a range of features that enable companies to anticipate the impact of tariffs on their supply chains and finances. By simulating various tariff scenarios rapidly, businesses can test and evaluate multiple "what-if" situations, understanding potential financial and operational consequences under different regulatory conditions.
The Tariff Modeller leverages advanced technology, powered by robust calculation engines and real data, to provide accurate modeling tailored to the specific business. This improves the precision of forecasts related to tariffs and taxes, providing a valuable advantage in an increasingly complex global trade environment.
The tool is flexible and scalable, supporting large volumes of transactions and customisable to unique business needs. It also integrates with KPMG’s Indirect Tax Toolkit, enabling batch tax calculations and volume testing that speed up analysis and provide comprehensive insights.
By incorporating tariff mitigation into supply chain leadership, businesses can transform what was once an operational challenge into a competitive advantage. This allows them to protect margins, enhance customer retention, and make strategic decisions rather than reactive adjustments.
The Tariff Modeller supports trade and customs planning by simulating the impact of various US tariff regimes on specific HS codes, product groups, and countries of origin. However, it does not automatically assess origin qualification, relying on Certificate of Origin, Regional Value Content, or BOM data provided by the company.
Users can export customisable reports for effective internal communication and negotiations with overseas buyers. Based on these insights, KPMG helps businesses develop targeted cost-saving strategies aimed at mitigating tariff impacts. Furthermore, KPMG offers hands-on support in implementing sourcing shifts or other tariff mitigation initiatives, ensuring strategic execution and long-term resilience.
It's important to note that the quality of the Tariff Modeller's output depends on the quality of the input data provided by the company. KPMG assists in creating a phased action plan that prioritises high-impact areas for maximum efficiency.
Recent developments such as the amendments to the Law on Corporate Income Tax in Vietnam and ongoing trade negotiations with the United States have highlighted the importance of tools like the Tariff Modeller. With promising developments for Vietnam's trade relations with the US, businesses can expect intra-ASEAN trade to grow, providing new opportunities for cost-saving and tariff mitigation strategies.
Vietnam is actively working with the US on the early recognition of its market economy status to help Vietnamese goods shun market risks. A demonstrative scenario showed a reduction of nearly 65% in total import duties by shifting production from China to Vietnam.
KPMG hosted a Tariff Modeller Demo Workshop on August 6, offering businesses the opportunity to learn more about this powerful tool and how it can help them navigate the complexities of global trade.
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