Current market uncertainties and supply chain risk mitigations

We are fully aware that our customers have been to some extent affected by the new tariffs that were put in place last month. The uncertainties derived from these tariffs (or their suspensions) have raised good questions from our business partners. We are committed to operating in full transparency and supporting our clients in these challenging times.

We are pleased to provide the following information:

On the questions of when the tariffs will be applied and how products in transit will be affected, the information that follows is an excerpt from the official guidelines:

 

1. Duty Exemption Eligibility:

To qualify for exemption from additional IEEPA reciprocal duties, shipments must have an Estimated Time of Departure (ETD) before April 5, 2025, and must arrive by May 27, 2025, under HTS 9903.01.28.

Shipments that depart or arrive outside this window will not qualify for the exemption.

2. Duties for Specific Loading Dates:

Shipments loaded onto the mother vessel between April 5, 2025, and April 8, 2025, will be subject to an additional 10% IEEPA duty, except China.

Shipments loaded on or after April 9, 2025, were initially scheduled to have reciprocal tariffs applied. However, a 90-day pause has been implemented on these additional tariffs, except for China.

3. Current IEEPA Duty Rates:

The current IEEPA duty rate is 10% for all countries, except China, for which the rate is 125%.

We recommend reviewing your upcoming shipments to ensure compliance with these guidelines.

 

In addition, we wish to advise that starting on May 1st, our invoices will have, in all applicable situations, an additional line in which the tariffs will be listed. In doing so, we aim to provide full transparency to our pricing and hope that we will be able to return quickly to prior pricing if there is a decision to remove the 10% IEEPA duty.

Logistic supply chains are intertwined in ways that sometimes are hard to understand. During the pandemic there were incredible disruptions simply due to the lack of shipping containers in some parts of the world. It is still very hard to understand how this new business environment will impact global supply chains. The paradox that we face is that we need to plan stocks more conservatively due to supply chain challenges and provide longer lead times in this period of increased business uncertainties.

Our reason to exist is to bring true, innovative South American ingredients to the US market and support our customers in delivering healthy CPG products to consumers. Our utmost commitment is to do everything within our reach to supply all the ingredients that your formulation requires in a timely fashion. We will do that in the good times and the hard times.

Please, do not hesitate to contact us so that we can help you with any challenge you are facing in your supply chain. We will gladly help you or refer you to one of our business partners.

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