Tariff Classification, Tariff Engineering & Chapter 98 Provisions

There are a number of proven and legitimate ways to avoid or reduce the duties and trade remedy tariffs the U.S. imposes on imported goods.  STR attorneys have extensive experience helping companies utilize these tools to lower costs

Tariff classification determines the duty you pay when importing goods into the U.S. STR’s experienced professionals can review the classification of your products to ensure accuracy and thus avoid potential delays and penalties. We can also analyze whether your goods may be classified more favorably or appropriately, which can result in substantial duty savings. Learn more about our tariff classification services here. 

Tariff engineering allows importers of products subject to high duties or trade remedy tariffs to import those goods in unfinished or embellished forms to legally take advantage of classification provisions carrying a lower or free rate of duty. U.S. courts have repeatedly affirmed this practice and STR professionals frequently help companies take advantage of it through both administrative proceedings before CBP and other agencies as well as legal proceedings before federal courts.

Special provisions under Chapter 98 of the Harmonized Tariff Schedule of the U.S. may enable importers to partially or fully avoid duties and trade remedy tariffs on numerous types of products based on their use or condition. For example, products exported from and returned to the U.S., regardless of their country of origin, are exempt from import duties under heading 9801. In addition, the value of U.S. components in a product assembled abroad can be deducted from the total dutiable value of that good when it is imported into the U.S. under heading 9802.

Cost savings: STR has litigated landmark classification cases, obtained legislation expanding Chapter 98 benefits, and advised companies of all sizes on how to utilize available tools, helping them save hundreds of millions of dollars in duties and tariffs.

Domain expertise: Members of our team have written and adjudicated national rulings as staff members with U.S. Customs, represented the U.S. government on classification issues at the World Customs Organization’s Harmonized System Committee, and served as advisors to commodity-specific associations on classification initiatives.

Certainty: STR professionals have deep technical knowledge of commodities and industry specific production processes that have enabled them to successfully advocate for these well-established methods before the courts and CBP.