The recent elimination of the $800 de minimis rule for Chinese imports means all shipments—regardless of value—now face full tariffs. For wholesale buyers, this significantly increases costs, but strategic planning can help minimize expenses. Here’s how to adapt.
1. Reclassify Products Under Lower-Tariff HS Codes
Not all products are taxed equally. Some HS codes have lower duty rates than others.
✅ Action Steps:
- Consult the U.S. International Trade Commission (USITC) database to identify favorable classifications.
- Work with a customs broker to ensure proper categorization.
2. Use Foreign Trade Zones (FTZs) to Defer or Reduce Duties
FTZs allow goods to enter the U.S. without immediate duty payments. Taxes apply only when products leave the zone for domestic sale.
✅ Benefits:
- Delay duty payments until goods are sold.
- Reduce costs by processing/repackaging in the FTZ.
🔗 U.S. Foreign-Trade Zones Board
3. Consolidate Shipments to Reduce Per-Package Fees
Since postal shipments (USPS, ePacket) may face flat fees per package, consolidating orders lowers costs.
✅ How It Works:
- Instead of 10 x $100 shipments, send 1 x $1,000 bulk order.
- Use bonded warehouses in China to merge orders before shipping.
⚠️ Warning: Private couriers (DHL, FedEx) don’t qualify for flat fees—full tariffs apply.
4. Shift Sourcing to Alternative Countries (Vietnam, Mexico, India)
If tariffs make Chinese goods too expensive, consider nearshoring or ASEAN suppliers.
✅ Best Alternatives:
- Vietnam (low labor costs, trade agreements)
- Mexico (USMCA tariff-free benefits)
- India (growing manufacturing hub)
5. Negotiate FOB or EXW Terms with Suppliers
- FOB (Free On Board): Supplier covers costs until goods leave China.
- EXW (Ex Works): You handle all shipping/logistics (more control over costs).
✅ Tip: Push suppliers for better pricing to offset tariffs.
6. Explore Duty Drawback Programs
If you re-export goods (e.g., after processing), you may reclaim up to 99% of duties paid.
🔗 U.S. Customs Duty Drawback Guide
Final Thoughts: Adapt or Lose Profit Margins
With no more $800 exemptions, wholesale buyers must:
✔ Optimize shipping methods (consolidate, use FTZs)
✔ Explore alternative suppliers (Vietnam, Mexico)
✔ Leverage duty-saving programs (drawback, HS code adjustments)
Need Help? Consult a licensed customs broker to ensure compliance while cutting costs.
Disclaimer: Trade policies change frequently. Verify all strategies with a logistics expert before implementation.
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