Tariff classification Archives - Customs & International Trade Law Firm

Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration
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Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration
Import

Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration

Donald Trump favors tariffs. Leading up to the 2024 election, he called himself the “tariff man” and stated that tariffs are “the greatest thing ever invented” and “the most beautiful word in the dictionary.”

Although the specifics of Donald Trump’s tariff plan have yet to be revealed, he has made numerous public statements about the tariffs he has in mind. At a rally in North Carolina, he suggested imposing a 10-20% tariff on all imported goods. He also said that he would impose a 25% tariff on imports from Mexico if the country does not help curb the flow of immigrants and drugs over the border. He has also suggested a massive 60% to 100% tariff on Chinese origin goods.

So, what can importers do to prepare? A lot!

First, What is a Tariff?

A tariff (also known as a duty) is a tax levied by governments on the value of imported products. Tariffs differ greatly by country and by individual product. In the United States, tariffs are collected by U.S. Customs and Border Protection (CBP) and the money goes to the U.S. Treasury.

The importer of record is responsible for correctly classifying their goods and paying the appropriate duty rate. Tariffs are not paid by the foreign seller or the country from which the goods are imported, thus the costs are generally passed along to the U.S. consumer.

Learn more about how tariffs work here.

Strategies to Minimize Tariff Costs

An increase in tariffs can undoubtedly have a significant impact […]

By Jennifer Diaz|2024-11-18T13:51:59-05:00November 15, 2024|Import|0 Comments

Bloomberg: Tariff Classification Basics
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Bloomberg: Tariff Classification Basics
Bloomberg, Bloomberg Import, HTSUS, Import, International Trade, U.S. Customs and Border Protection (CBP)

Bloomberg: Tariff Classification Basics

Diaz Trade Law is enthusiastic to announce Bloomberg Law published another one of our articles, “Tariff Classification Basics“! Below is the article reproduced with permission for your reading pleasure. You can read the article here (where you’ll have the ability to access all of the great hyperlinks). Please note you cannot click on the hyperlinks below.

We’d love to hear your feedback!

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By Jennifer Diaz|2023-07-26T12:40:29-04:00January 26, 2022|Bloomberg, Bloomberg Import, HTSUS, Import, International Trade, U.S. Customs and Border Protection (CBP)|0 Comments

Customs Classification – A Key Component of an Import Compliance Manual

We are often asked by importers to assist in classifying their products under the Harmonized Tariff Schedule of the U.S. (“HTS” or “HTSUS”). While seeking assistance from expert counsel is a best practice, under the CBP Modernization Act, an importer of record (“IOR”) is the sole party responsible for determining the correct classification of imported goods (and thereby paying the correct amount of customs duties). An IOR must use reasonable care in classifying its product at the time of entry. Should an importer misclassify their products and not pay the appropriate duties to CBP at the time of importation; the importer is exposing itself to potential CBP penalties under 19 U.S.C. 1592. The process of classifying goods can be a tedious process and may require time and research to arrive at the correct HTSUS number for any one product.

This blog expands our prior blog, Crash Course in the Harmonized Tariff Schedule of the United States, and provides additional detail on the classification process and tips for importers to use when deciding on a classification its customs broker will declare to CBP.

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By Jennifer Diaz|2025-01-30T06:43:05-05:00October 4, 2021|Best Practices, Enforcement, HTSUS, Import, Pre-compliance, U.S. Customs and Border Protection (CBP)|0 Comments

LIST 3 Exclusion Updates

On June 24, 2019, the Office of the United States Trade Representative (USTR) provided the public with an exclusion process for items included subjected to Section 301 Tariffs. Specifically, the exclusions related to products included on List 3, which went into effect on September 24, 2018.

Originally, List 3 imposed 10 percent ad valorem duties on 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $200 Billion. Months later, in May 2019, the 10 percent ad valorem duties were increased to 25 percent. […]

By Jennifer Diaz|2022-07-07T14:38:56-04:00October 26, 2020|China, China Trade War, Enforcement, Export, HTSUS, Import, Intellectual Property Rights, International Business, International Law, International Trade, Investigation, IPR, Trademarks and Logos, Seizure, Supply Chain, U.S. Customs and Border Protection (CBP), U.S. Office of the United States Trade Representative (USTR)|1 Comment

List 4 Exclusion Update

On June 26, July 17, and August 11, 2020, the Office of the United States Trade Representative (USTR) requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 4.

When the list was announced on August 20, 2019, it imposed a 10 percent ad valorem on 3,805 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an annual trade value of approximately $300 billion. Then, on August 30, 2019, USTR increased the rate of the additional duty announced in the August 20 notice from 10 to 15 percent. Finally, on January 22, 2020, USTR determined to reduce the rate from 15 to 7.5 percent. […]

By Jennifer Diaz|2022-07-07T14:38:09-04:00October 23, 2020|China, China Trade War, HTSUS|1 Comment

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