Companies are asking more strategic questions about trade compliance this year. Many are revisiting their tariff strategy as sourcing shifts across regions, while others are focused on reducing exposure tied to documentation and classification. There is also growing interest in recovering overpaid duties and gaining more control over what gets declared at the border.
We recently sat down with Trade Compliance Consultant Karen Kenney to talk through the top questions importers are asking today. These are the kinds of issues compliance experts are helping importers navigate every day. Here are some of the questions that continue to come up, and the context behind them.
Can importers still protest and potentially get refunds of IEEPA duties?
Yes, and the deadline matters. Companies that paid IEEPA tariffs, including the reciprocal tariffs and duties on goods from China, Canada and Mexico, may be able to recover those duties if the Supreme Court rules the tariffs implemented under the International Emergency Economic Powers Act (IEEPA) are unlawful. The Supreme Court is expected to hear the case in early November and issue its decision by February or March of 2026.
In the interim, it’s important to monitor entries on which you paid IEEPA tariffs. Experts believe that if CBP closes out your entry, otherwise known as liquidation, you could lose your right to a potential refund unless you file a protest to keep the transaction open. You have 180 days from the liquidation date to file a protest.
Some companies are tracking the liquidation of their entries and filing protests now to preserve their rights to potential refunds. Others are holding off, depending on legal advice. If your entries have liquidated and are nearing the 180-day mark, it may be worth reviewing those records now to determine whether a protest is worth the investment.
If you’re unsure how potential tariffs could impact your business financially, or how to file a protest, Dimerco can help. We also offer a no-cost analysis tool to help you estimate those duty costs and assess risk.
Could we be overpaying tariffs on copper, steel, or aluminum products?
It happens more often than people think. Section 232 duties apply only to the cost of the steel, copper or aluminum components in the product. But in many cases, importers apply the duty to the full invoice amount, which includes things like labor, tooling, overhead, profit or packaging which are not subject to the 232 duties.
There may also be room to reclassify goods into a more accurate HTS code that isn’t subject to the 232 tariffs. Either way, it is worth looking at the breakdown of what you are declaring and checking how your customs broker is filing the entries.
Should we be auditing our customs entries more often?
Yes. Audits are where companies find money left on the table. In some cases, importers are paying duties on exempt items or using the wrong HTS codes. Other times, they are missing out on drawback claims, not catching origin mistakes, or paying 232 duties on values when they don’t apply.
Entry reviews should be done on every entry summary to be sure of their accuracy. High level audits can be done once a year or even more frequently if your sourcing or product lineup changes. Karen noted that in some cases, companies have recovered tens of thousands of dollars simply by correcting basic classification, valuation and filing errors. Given all the recent tariff changes, many brokers’ systems are struggling to keep up which is another great reason to be double checking your Customs entries.
How serious is USCBP enforcement on transshipment?
It is a growing issue. If you are sourcing product from Southeast Asia that contain China-origin components, USCBP expects you to show that the goods were substantially transformed in the country of origin you have declared. Simply routing a shipment through a different country or assembling it in another country is not enough.
Enforcement has increased for shipments coming from countries like Vietnam, Thailand, and Malaysia, especially in industries where China was the original source, such as textiles, aluminum, steel, auto parts, electronics, and solar components.
USCBP has the authority to apply a 40 percent transshipment duty if they determine the origin was falsely declared. Other consequences can include seizure of goods, monetary penalties, and exclusion from future entry.
USCBP is also using its EAPA (Enforce and Protect Act) authority to act on tips from competitors, suppliers, and even customers. If you cannot show complete documentation on how and where your goods were made, you are exposed.
Some common red flags CBP looks to include:
- Country-of-origin claims with no evidence of production
- Bills of lading that suggest rerouting through third countries
- Ownership or transaction structures that obscure who made what and where
- Sudden volume shifts from China to other countries without explanation
To stay compliant, importers should:
- Verify factory production activity and keep records
- Use traceability tools where available
- Ensure country-of-origin declarations are reviewed by the broker or other compliance experts
- Flag any new sourcing shifts for compliance review before importing
This is not just about paperwork. It is about showing you have control of your supply chain and that your declarations reflect what actually happened upstream.
What duty-saving strategies are still underused?
There are several. Drawback is one of the most overlooked. If you import goods and later export them, you can claim back some of the duties. Bonded warehousing can also help to defer duty payments, especially if you are holding inventory or reselling.
Some companies benefit from tariff engineering. That could mean manufacturing a product in a way that changes its classification or swapping a component to compliantly reduce the duty rate. USMCA qualification is another option if your product is built in North America and meets the rules of origin.
The key is to know where to look. These programs are not always complex, but they do require documentation and a bit of planning.
What documents do we need to prove USMCA qualification?
You will need a complete bill of materials, along with HTS codes, value, and country of origin for each component. You also need to show how the finished product qualifies under USMCA, either through regional value content or tariff shift.
Supplier affidavits, cost breakdowns, and traceability are all part of the file. It is not enough to check a box. You need to be able to prove it if asked.
Are we paying auto tariffs on parts that are not used in passenger vehicles or light trucks?
Possibly. Some HTS codes that trigger automotive tariffs only apply to passenger cars or light trucks. If your product is going into a snowplow, forklift, or industrial vehicle, it may not be subject to those duties.
The issue is that many importers do not document end use clearly or tell their broker how the part is being used. Reviewing the classification and intended use can help avoid paying unnecessary 232 duties.
Why These Questions Are Worth Asking Now
These are not hypothetical scenarios. They are real conversations and decisions importers are facing today. Whether it is about recovering duties, reducing exposure, or getting a better handle on what is being declared, the companies asking these questions early are better positioned to act.
This is about more than compliance. It is about getting smarter with how you move goods across borders.
Need to Reevaluate Your Trade Compliance Strategy?
From recovering duties to navigating CBP enforcement or reducing sourcing risk, companies are rethinking how compliance fits into their supply chain strategy. With increased scrutiny and new opportunities to reduce costs, getting ahead of these issues now can make a difference.
To explore how your business can identify duty savings or strengthen its compliance process, get in touch with a Dimerco specialist. We’ll help you review the right areas based on your products, regions, and goals.
If you’re reassessing risk exposure or tariff strategy, download our eBook: Trade Compliance 101: A Practical Guide for Global Shippers.
