$450K Breakthrough: The Power of Proper Classification Goes Straight to the Bottom Line
This case study demonstrates how proper classification can impact duties paid on electronic goods imported into the U.S.
The Challenge:
Infinite Objects, a company that creates collectible video prints, was importing hardware from China and facing steep import costs. Their products were subject to a 25% China tariff plus standard duties, resulting in an effective duty rate of 27.6%. This significant tariff burden was cutting into margins and limiting resources for growth and innovation.
The Solution:
Through a referral, Infinite Objects engaged International Tariff Management (ITM) to review their product classifications. ITM conducted a detailed analysis and confirmed that the company’s products qualified for a duty-free classification with only a
7.5% tariff rate. ITM then managed the protest process for previous entries and guided Infinite Objects in updating their classification for future imports.
The Impact:
- Refunds Approved: Over $50,000 already received, with another $50,000 pending.
- Future Savings: Since changing the classification, Infinite Objects has saved $350,000 in tariff costs.
- Total Benefit: More than $100,000 in refunds and ongoing savings of 20% on every future import.
- These savings have been transformative, allowing Infinite Objects to reinvest in expanding their artist base and creating new products.
The Takeaway:
If you’re unsure about your import classifications, you'll need expert advice. Even small errors can have massive financial implications. Start by researching rulings in the CBP database, but ultimately,
consult professionals like ITM to ensure compliance and maximize savings.
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