Classification engineering
Small design changes can move a product into a lower-duty HS code. The classic example: Converse All-Stars are built with a felt bottom layer so they classify as 'slippers' (lower duty) rather than athletic footwear.
Legal ways to lower your duty bill by changing how a product is classified, sourced, or assembled without misrepresenting anything to customs.
Small design changes can move a product into a lower-duty HS code. The classic example: Converse All-Stars are built with a felt bottom layer so they classify as 'slippers' (lower duty) rather than athletic footwear.
Substantial transformation rules determine country of origin. Moving a key assembly step to a USMCA / GSP country can eliminate Section 301 tariffs entirely but the transformation has to be real, not cosmetic.
When goods pass through a middleman, the first-sale doctrine lets you declare the earlier (lower) factory-to-middleman price as the dutiable value often saving 1530% on duty. Requires solid documentation.
Free Trade Zones and bonded warehouses defer duty until goods leave the zone. If you re-export or transform within the zone, you may pay no duty at all.
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