Duty Drawbacks and Anticipated Effect of Duty Rate Changes

This paper aims to develop an appropriate model for taking duty considerations into account when planning a strategic production network. To this end, special emphasis is placed on mapping inward and outward processing. A subsequent case study is also presented to characterize the extent by which potential future duty rate changes or free trade agreements, such as an agreement between the USA and the EU, should influence the design of a production network and be regarded during strategic planning.