👉 Tariff engineering is a practice used by companies to manipulate the classification of their goods to take advantage of lower customs duties and taxes. This involves altering the product's description, packaging, or classification to fit into a lower tariff rate category, often by changing the Harmonized System (HS) codes or adding unnecessary components to qualify for a cheaper duty rate. While legitimate in some cases, such as when dealing with international trade, it can also be misused to evade tariffs or taxes, leading to legal and ethical concerns. Companies engaging in tariff engineering must navigate complex international trade regulations and ensure compliance to avoid penalties or legal repercussions.
