E-Book: Classification & Tariff Engineering

Classification & Tariff Engineering Overview

The International Trade Strategy Series offers insights into customs and international trade and furnishes tools to help navigate your day-to-day business. We provide suggested solutions that can be applied immediately, to contribute to duty savings and improve margin.

The most successful design, product development, and sourcing teams use a collaborative approach to optimize product quality and price. This volume is meant to enhance those skills needed to contribute to good business decisions:

• Designers and product developers will discover nuances in fiber content and blends that can make products more competitive without sacrificing the design aesthetic.
• Technical designers will learn to modify garment construction in ways that reduce the duty rate.
• Production and sourcing teams will learn the advantages of costing and margin improvement through tariff engineering techniques.

In this volume, we cover the Harmonized Tariff System (HTS) classification guidelines and the rules used in applying the system. We review specific attributes used to determine classification and describe techniques for modifying fiber content or garment construction that will result in duty savings without compromising the integrity of the design.

Although the duty on cotton is not the lowest in the tariff, the use of cotton can contribute to substantial duty savings and create a beautiful natural-fiber product. Keep in mind that accurate classification is a requirement of U.S. Customs and Border Protection (CBP), and noncompliance can result in substantial fines and penalties. Proper classification requires an understanding of both the HTS and the General Rules of Interpretation.