How to Legally Avoid Tariffs on Imports: A Guide for American Businesses

In recent years, international trade has become increasingly complex due to shifting political landscapes and policy changes. One such significant change occurred on July 30, when former President Donald Trump signed an executive order suspending the de minimis exemption for imported goods valued at $800 or less. This exemption, which previously allowed low-value packages to enter the United States duty-free, was a lifeline for many small businesses and e-commerce entrepreneurs. With the suspension effective from August 29, many overseas suppliers halted shipments of small packages to the U.S., leaving American buyers scrambling for solutions.

For American businesses, especially those relying on affordable imported goods, this policy shift posed a critical challenge: How to continue importing products without incurring hefty tariffs that could erase profit margins? How to maintain relationships with overseas suppliers while adapting to new regulations? And most importantly, how to do so legally and efficiently?

Enter OERISE, a trusted custom service manufacturer specializing in street style and outdoor hats and clothing. Established in 2010, OERISE has built a reputation for quality and reliability. In the face of these new tariffs, they have developed an innovative solution that allows their American clients to continue importing goods without paying additional tariffs. Here’s how they do it—and how you can apply similar strategies to your business.

Understanding the De Minimis Rule Change
First, let’s briefly explain the de minimis rule. Previously, under Section 321 of the Tariff Act, shipments valued at $800 or less could enter the U.S. without being subject to duties or taxes. This facilitated a boom in e-commerce and small-scale importing, particularly from countries like China. However, the executive order suspended this exemption for certain countries, aiming to protect domestic industries and address trade imbalances. The result? Thousands of businesses faced sudden cost increases and operational disruptions.

The OERISE Solution: Special Line Shipping
OERISE’s approach is straightforward, legal, and designed to minimize disruption for their clients. They offer a "Special Line Shipping" method that ensures orders arrive without requiring the American buyer to pay tariffs. Here’s how it works:

Step 1: Factory to U.S. Customs via Custom Airline
OERISE handles the entire process from the factory to U.S. customs. They use certified customs brokers and approved airlines to ship the goods. During this phase, OERISE manages all customs clearance procedures and pays the applicable tariffs upfront. This step takes approximately 6-8 days.

Step 2: Domestic Delivery via UPS or FedEx
Once the goods clear customs, OERISE arranges for domestic shipping through reliable carriers like UPS or FedEx. This leg of the journey takes 3-5 days, bringing the total delivery time to 10-12 days—comparable to standard shipping times.

Key Benefits for American Buyers
1. No Tariff Payments: OERISE covers all tariffs and duties during customs clearance. This means American buyers receive their orders without any unexpected fees or paperwork.
2. Cost-Effective Shipping: Despite the additional steps, shipping costs remain similar to pre-policy rates. OERISE absorbs the tariff costs without raising product prices or shipping fees.
3. Same Product Pricing: The unit price for hats and clothing stays unchanged, allowing businesses to maintain their profit margins.
4. Legal and Secure: This method fully complies with U.S. customs regulations. By handling tariffs upfront, OERISE ensures a smooth, legal import process.

Why This Works: The Legal Framework
Some might wonder if this approach is a loophole or ethically questionable. However, it is entirely legal. U.S. customs laws allow for tariffs to be paid by either the buyer or the seller. By opting to pay tariffs on behalf of their clients, OERISE is simply leveraging existing regulations to benefit both parties. This is similar to how many large corporations structure their international shipments to optimize costs.

Broader Applications for American Businesses
While OERISE offers this solution for hats and clothing, the strategy can be applied to other industries. Here are some tips for American businesses looking to navigate the new tariff landscape:

1. Partner with Suppliers Who Handle Tariffs
Seek out suppliers willing to manage customs clearance and tariff payments. Many manufacturers, especially those with experience in international trade, are adapting to offer similar services. This not only simplifies the process for you but also strengthens your supplier relationship.

2. Consider Consolidated Shipping
If you frequently order small packages, consolidate them into larger shipments. While the de minimis exemption may be suspended for low-value items, larger shipments often qualify for bulk tariff rates, which can be more economical.

3. Leverage Free Trade Agreements (FTAs)
Explore whether your products qualify under FTAs between the U.S. and other countries. For example, goods manufactured in countries with FTAs might be eligible for reduced or zero tariffs.

4. Use Customs Brokers
Engage a licensed customs broker to help navigate the complexities of tariff classifications and regulations. Brokers can identify opportunities to minimize duties legally.

5. Diversify Your Supply Chain
Consider sourcing from countries not affected by the same tariff restrictions. Alternatively, work with suppliers who have manufacturing facilities in multiple locations.

The Bigger Picture: Adapting to Global Trade Changes
The suspension of the de minimis exemption is part of a broader trend toward protectionist trade policies. While these changes aim to address domestic economic concerns, they often create challenges for small businesses reliant on global supply chains. However, with challenges come opportunities—to innovate, to build more resilient supply chains, and to develop stronger partnerships with suppliers.

OERISE’s approach exemplifies how adaptability and customer-centric solutions can turn a regulatory hurdle into a competitive advantage. By proactively addressing the tariff issue, they not only retain their American clients but also enhance their reputation as a reliable partner.

Conclusion: Turning Challenges into Opportunities
The recent tariff changes need not be a death knell for your importing business. With strategies like those offered by OERISE, you can continue to import goods affordably and legally. The key is to work with suppliers who are proactive, transparent, and willing to evolve with the regulatory environment.

For American buyers working with OERISE, the message is clear: you can continue to order high-quality custom hats and clothing without worrying about tariffs, delays, or hidden costs. And for businesses outside the apparel industry, the principles remain the same—prioritize partnerships, understand the regulations, and be open to innovative shipping solutions.

In an ever-changing global economy, resilience and adaptability are your greatest assets. By embracing solutions like Special Line Shipping, you can not only survive but thrive in the new era of international trade.

 

OERISE is a custom manufacturer specializing in street style and outdoor hats and clothing. Since 2010, they have been serving clients worldwide with a commitment to quality, affordability, and innovative solutions. Learn more at www.oerise.com