Many professionals involved in merger and acquisition deals are unaware of the complex rules governing the regulation of international trade and may fail to adequately analyze the customs and trade practices of target companies as part of standard due diligence reviews. They may also erroneously believe that such companies, particularly those who have been involved in imports or exports for a long time, must have sufficient controls, procedures, and processes in place to contain regulatory risk. However, if potential liabilities are not timely identified and remediated, companies can find themselves dealing with unexpected and costly surprises well after a deal is closed, including significant duty assessments, civil penalties of up to 800 percent of the value of duty underpayments, and burdensome enforcement or even criminal proceedings.
Why Use ST&R’s M&A and Customs Strategies Services
Experience: ST&R’s decades of experience conducting and coordinating pre-acquisition due diligence compliance reviews has yielded positive results for a wide range of clients.
Certainty: With global supply chains frequently interwoven among numerous suppliers and countries, customs compliance demands a level of coordination between tax, legal, operations, logistics, financial, and other staff that many target companies just don’t have. ST&R’s insightful professionals know how to parse the data and find the information you need to make an informed decision.
Cost savings: Unearthing potential problems ahead of an M&A transaction, from Section 301 tariff liability to inaccurate country of origin determinations to improper valuation methods, can save you the costs and headaches of post-closing remediation.