Tariff Classification and Customs Valuation

Tariffs are a charge imposed on goods imported from outside the United States. Tariffs can be traced to ancient times. Import tariffs are often imposed based on a percentage of the items’ declared value. A difference of a few percentage points can result in increased costs in the hundreds of thousands, if not millions, of dollars.

In our ninth decades of operation, we represent clients involved in complex and costly import tax disputes, and we assist clients to find the most favorable duty rates allowable under law with our extensive knowledge of the Harmonized Tariff Schedule that is used to classify goods.

Classification determines the rate of duty, including possible import restrictions, special tariff treatment or concessions, and the admissibility of goods. Reclassification claims can succeed with minor changes to the product (tariff engineering) or shipping parts rather than a completed product. Savings provisions also exist for goods imported for repair or used as samples for additional orders.

Effective import duty structures and plans allow importers to take advantage of specific trade laws and minimize customs duties. Customs valuation formulas govern all merchandise imported into the United States. Valuation of imported merchandise involves complicated formulas. Certain strategies can reduce duties, even when the purchase of products is through an intermediary as opposed to directly from a manufacturer. Proper structuring can also result in certain non-production costs to be excluded from one’s dutiable value.

Implementation of these strategies requires the expertise of a customs attorney. We strive to provide our clients with maximum benefits while complying with strict rules and regulations.

Most tariff disputes are resolved at the administrative level. Rarely do cases involving classification and value disagreements end up in court. However, we are always prepared to litigate the dispute if that prepared to litigate the dispute if that provides the best outcome for our clients.