“Tariff engineering” refers to the strategic modification or restructuring of a new or existing product in order to minimize the amount of customs duty or tariff paid on the product during import or export. It involves making deliberate changes to the product’s design, composition, or classification within the customs tariff schedule to take advantage of lower duty rates or exemptions. Tariff engineering aims to legally optimize the cost of importing or exporting goods by leveraging variations in tariff classifications or utilizing preferential trade agreements. Companies may engage in tariff engineering to reduce costs, enhance competitiveness, or navigate complex trade regulations. Effective tariff engineering requires a deep understanding of customs regulations, tariff schedules, and trade agreements to identify opportunities for duty minimization while ensuring compliance with applicable laws and regulations.

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