Client Overview
- Company: Confidential Industrial Goods Importer
- Industry: Industrial Supply & Distribution
- Size: $25M annual revenue
- Location: United States, importing from Asia
The Challenge
The client received what appeared to be an attractive pricing offer from a Chinese supplier. However, the terms of the deal were vague, documentation regarding country of origin was unclear, and indications suggested potential transshipment through third-party ports. The internal team lacked the expertise to properly assess the risks, and Customs exposure was not being considered.
Our Approach
Dan conducted a rapid tariff exposure and compliance review:
- Analyzed the supplier quote line by line to uncover hidden costs and omissions
- Flagged transshipment risks and educated the client on potential Section 307 and 592 penalties
- Clarified how Incoterms (e.g., FOB vs. DDP) would shift liability and control
- Advised the client on documentation requirements, country-of-origin validation, and methods to safeguard against customs fraud
The Results
- Avoided potential retaliatory tariffs resulting from misclassified country of origin
- Implemented processes for HTS review, COO verification, and landed cost modeling
- Educated leadership on high-risk areas, including forced labor restrictions and anti-dumping regulations
- Mitigated significant legal and operational risks within 48 hours of initial engagement
Client Feedback
“I met Dan while he was working on tariffs. Shortly afterward, I received a pricing offer from a Chinese supplier that seemed too good to be true — and it was. Dan helped me analyze the quote, but more importantly, he showed me the risks of potential transshipment and Customs liability due to unclear terms of sale. He saved me time and prevented potentially costly supply chain disruption.”
