- Understand the Harmonized Tariff Schedule and Customs Rulings.
- Collaborate with legal, design, and manufacturing teams.
- Stay updated on evolving international trade policy.
Corporations and law firms alike are beginning to see the value in hiring in-house tariff experts. In the long run, employing a tariff engineer may not only cut costs but also prevent costly litigation or penalties from customs violations.
Bonded Warehouses: The Other End of the Strategy Spectrum
While some businesses alter products to avoid tariffs, others opt to delay them entirely.
Bonded warehouses have emerged as a legal alternative for tariff deferment. These customs-controlled facilities allow companies to import goods without immediately paying tariffs. As long as the goods remain stored—sometimes for up to five years—the tariff clock doesn’t start ticking.
Jennifer Hartry, president of Howard Hartry, said that she’s seen a 95% surge in inquiries for bonded warehouse storage from companies dealing in Chinese goods.
Hartry’s clients stash everything from lithium batteries to electronics in hopes that shifting geopolitical winds might eventually lower tariff rates. It’s a gamble, but for some, it pays off.
Crossing the Line: Where Tariff Engineering Becomes Illegal
Critics argue that when U.S. firms actively conspire with Chinese manufacturers to tweak goods solely for the purpose of evading tariffs, they may be flirting with criminal fraud. Unlike bonded warehousing—which merely delays payment—coordinated product manipulation to mislead customs authorities could run afoul of:
