Tariff is a tax or customs duty imposed by a government on imported or exported goods. Different tariffs applied on different products by different countries or territories. The tariff, along with the other assessments, is collected at the time of customs clearance in the foreign port.

In general, the responsibility of tariff is agreed between a shipper and a recipient. Payment can made by the shipper, the recipient, or a third-party account. 

De Minimis is the valuation ceiling that allow for duty or tax-free entry of a shipment. This threshold varies across markets. 

The HS Code might have different names depending on where the shipment is going and who is in charge of it. Some of these names include Harmonized Tariff Schedule code (HTS), Harmonized System Nomenclature code (HSN), commodity code, or tariff.

Regardless of the name, the description of your products determines such codes. This code is important because it determines the duty and tax rates that apply to your shipment. 

1. Increased costs of products

   • Exporters and Business-to-Consumer (B2C) sellers may absorb or pass on increased tariffs, resulting in reduced profit margins or reduced price competitiveness.

   • Additional costs of managing the tariff changes can include sourcing, manufacturing, shipping, warehousing, and last-mile delivery.

2. Supply chain disruptions and increased supply chain complexity

   • B2C sellers or exporters may need to adjust orders, product mix, and logistics for U.S. shipments, potentially leading to customs delays, oversupply, or shortages.

   • These disruptions may impact product supply chain, resulting in out-of-stock, obsolete products and/or reduced cash flow.

   • B2C sellers or exporters may source from other markets to serve the U.S. market with additional investment and management resources required.

   • Different supply chain models may be established to reduce the impacts and that may increase the overall supply chain complexity.

3. Trade compliance management

   • Managing fast and frequent changes in tariffs requires expertise and additional resources to ensure compliance and avoid any customs penalties or delay.

4. Elimination of de minimis exemption

   • Both cross-border eCommerce and B2C are now significantly affected by duty and tax incurred on small volume and low value B2C orders.

5. Market uncertainty

   • Potential retaliatory tariffs on U.S. products may increase complexity of global trade, especially for large and multinational sellers or importers.

   • Unpredictable nature of tariff policies makes demand forecasting and medium to long-term business planning more difficult.

1. Expertise in trade compliance

   • Expertise to understand the tariff changes and their implications to importers or sellers.

   • Comprehensive customs brokerage services to facilitate import clearance.

2. Cost impact mitigation and one-stop-shop shipping solutions

   • Shipping solutions and other advisories to mitigate the impact arising from increased tariffs for customers – from large volume customers to small-to-medium shippers.

   • Comprehensive ancillary services options to address unexpected needs for B2C orders from order placement to delivery, such as cross-docking, documentation, packing and delivery options.

3. Flexibility and agility

   • Flexibility and prompt actions to adapt to tariff changes and potential supply chain turbulence.

   • Global network and resources available to facilitate importers or sellers to manage changes in volume, sourcing locations or mode shift.

4. Account management and customer experience

   • Focal point of contact to provide professional advice and solution options to help sellers or importers manage cross-border commerce easier and more effectively.

   • Shipment monitoring and timely communications with shippers, importers or consumers for smooth customs clearance and minimized delay.