Why Free Trade Agreement (FTA) Qualification Matters

Compliance is more than just the best practice, it’s essential, especially for shipments claiming preferential treatment under FreeTrade Agreements (FTAs). Each shipment benefiting from reduced duties or exemptions must meet strict rules of origin to ensure the claimed benefits are valid and properly documented. Failure to do so can result in hefty fines, penalties, and even reputational damage. Yet, many businesses still view FTA qualification as a “nice-to-have” rather than the essential safeguard it is.Let’s explore the why behind FTA qualification and why your business should prioritize tools that make compliance second nature.

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The Risks of Non-Compliance

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Imagine a scenario where your company’s import practices come under scrutiny during an audit. You’ve been claiming duty-free status under the USMCA, but your documentation is incomplete, or worse, inaccurate.Suddenly, what seemed like a small oversight becomes a costly ordeal. Fines, back-dated duties, and the potential loss of FTA benefits are just the beginning. You’re now also faced with proving to auditors that you’ve taken reasonable care to comply with trade laws.

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Reasonable Care: The Key to Protecting Your Business

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Regulatory agencies don’t just look at whether a company is compliant; they also evaluate whether the company has implemented processes to ensure compliance. This is where reasonable care comes into play. For an FTA, demonstrating reasonable care means showing that you’ve taken active steps to understand and meet the rules of origin, maintain proper documentation, and continually monitor your compliance.

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The consequences of not meeting this standard are more than financial. Non-compliance can damage relationships with customers, disrupt supply chains, and erode trust within your organization.

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How the Right Tool Can Help

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A robust qualification tool isn’t just a convenience, it’s a critical component of your compliance strategy. Here’s how Kendrick Trade’s qualification tool helps your business implement reasonable care:

1. Accurate and Efficient Compliance
    Rules of origin can be daunting, especially when dealing with multiple products and suppliers. Kendrick Trade automates this process, ensuring accuracy and consistency.

2. Time and Resource Optimization
    Say goodbye to manual, time-consuming tasks. Our tool simplifies qualification, allowing engineers, procurement teams, and compliance professionals to focus on strategic initiatives.

3. Audit-Ready Documentation
    With Kendrick Trade, you’ll have the detailed qualification worksheets and certifications needed to meet regulatory standards and satisfy audits.

4. Transparent Pricing and ROI
    Our pricing is straightforward, based on the number of finished goods you need to qualify. And the cost savings from ensuring compliance and optimizing duty-free status can deliver a quick return on your investment.

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The Cost of Doing Nothing

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It’s tempting to think, “We’ve managed without a tool so far—why change now?” But in today’s increasingly regulated trade environment, the cost of doing nothing can be steep. Audits are becoming more frequent, and penalties for non-compliance are rising. The question is no longer whether you can afford to invest in a qualification tool, it’s whether you can afford not to.

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Your Why: Safeguarding Your Business

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The real why behind using an FTA qualification tool is simple: it’s about safeguarding your business. A reliable tool helps protect you from fines, penalties, and costly disruptions while strengthening relationships with suppliers and customers. With Kendrick Trade, you can claim preferential treatment with confidence, knowing you have the documentation to back it up. It’s not just about compliance, it’s about peace of mind and ensuring your business is set up for success.