The Costs Nobody Budgets For

Every importer has a landed cost model. Freight, insurance, duties, brokerage fees — the numbers that determine whether importing a particular product at a particular price is actually profitable. The problem is that most landed cost models are built on assumptions. Assumptions about classification. Assumptions about duty rates. Assumptions about country of origin eligibility. Assumptions about valuation treatment.

When CBP disagrees with those assumptions, the gap between what an importer expected to pay and what CBP says is owed can be enormous. And because customs duties apply to every shipment, not just one, a single classification error can compound across months or years of importation into an exposure that puts the entire import program at risk.

This is why customs lawyers are not a luxury for large multinationals. They're a practical necessity for any business importing goods into the United States at meaningful volume — and increasingly, at any volume, given how aggressively CBP and the broader trade enforcement apparatus have been operating in recent years.

The Regulatory Landscape Has Gotten More Complex

Trade has always been regulated. But the scale and complexity of that regulation has accelerated significantly. New tariffs, renegotiated trade agreements, country of origin enforcement actions, Section 301 tariffs on goods from China, forced labor compliance requirements under the Uyghur Forced Labor Prevention Act — the list of things an importer needs to get right, and the consequences for getting them wrong, has expanded considerably.

Section 301 Tariffs and the Classification Question

The Section 301 tariffs on Chinese-origin goods introduced a layer of complexity that the tariff schedule wasn't designed for. Whether a particular product is subject to Section 301 tariffs — and at what rate — often depends on classification decisions that were never previously material. A distinction that was academic when the duty rate difference was two percent becomes extremely significant when Section 301 tariffs add 25 percent to the equation.

Importers who have been classifying their goods one way for years may find that the correct classification — or a defensible alternative classification — changes their duty picture substantially. That analysis requires expertise in the tariff schedule, knowledge of how CBP has been ruling on similar products, and the judgment to evaluate which approach is legally sound and commercially beneficial.

Country of Origin Under Pressure

Country of origin rules have become more contested as importers have reorganized supply chains in response to tariff pressures. Moving production or processing operations to a third country in order to shift the origin of a product is a legitimate strategy — but it requires careful analysis of substantial transformation rules, specific rules of origin under applicable trade agreements, and CBP's current enforcement posture on the particular product category.

Getting this wrong isn't just a civil penalty risk. It can result in seizure of the goods, exclusion from FTA benefits, and in serious cases, criminal referral for customs fraud. Experienced customs lawyers analyze supply chain changes before they're implemented and provide the legal foundation for whatever origin determination an importer relies on.

The Stein Shostak Approach: Prevention as Strategy

Stein Shostak Shostak Pollack & O'Hara, LLP has operated since 1933 with a clear philosophy: the most cost-effective customs law work happens before a problem develops. Pre-importation planning, binding ruling requests, supply chain analysis, and trade compliance program development are the areas where experienced customs lawyers deliver the highest return — because the cost of prevention is always lower than the cost of a dispute.

Binding Rulings: Certainty as a Business Asset

CBP offers importers the ability to request binding advance rulings on classification, valuation, and country of origin. A binding ruling is exactly what it sounds like — CBP commits to treating the goods as described in the ruling when they're imported. For importers, that commitment is operationally valuable in ways that go beyond just knowing the duty rate.

It means the landed cost model is accurate. It means pricing decisions are made on solid ground. It means the CFO isn't hearing about unexpected duty assessments in the quarterly review. And it means that if CBP later decides to challenge the treatment of the goods, the importer has a binding ruling to point to as a defense.

Obtaining a ruling that reflects the most favorable treatment available under law requires knowledge of the tariff schedule, awareness of how CBP has ruled on similar goods, and the skill to frame the request in a way that elicits the right answer. That's work for a customs attorney who does this regularly — not for a general counsel who handles customs matters occasionally.

Customs Broker, Bonded Warehouse, and FTZ Compliance

Importers who work with licensed customs brokers, bonded warehouses, or foreign trade zones are operating in a compliance environment that carries its own obligations and risks. Customs brokers have regulatory responsibilities of their own, and the relationship between an importer and their broker involves legal dimensions that importers don't always fully appreciate. Bonded warehouses and FTZs offer genuine duty and cash flow advantages — but they require careful compliance management to preserve those benefits.

Customs lawyers who work regularly in this space provide importers and trade professionals with the guidance needed to navigate these relationships and programs correctly — and to defend against enforcement actions when they arise.

When the Dispute Is Already Happening

Prevention is the priority. But even well-managed import programs face disputes, and when they do, the speed and sophistication of the legal response matters.

Protest and Appeal

When CBP makes a classification, valuation, or admissibility decision that an importer disagrees with, the protest mechanism provides the first opportunity to challenge it. Protests have strict deadlines and procedural requirements, and the quality of the legal arguments presented in a protest shapes how the matter proceeds — both within CBP and if it needs to escalate to the Court of International Trade.

A us customs lawyer with litigation experience at the Court of International Trade is a meaningfully different resource than one whose practice stays within CBP. The ability to credibly escalate a dispute — and the knowledge of how CIT litigation proceeds — affects how CBP treats the matter even at the protest stage.

Seizure and Penalty Defense

Seizures and civil penalty proceedings are high-stakes, high-speed situations. Deadlines for filing petitions are short. The mitigation process requires both legal skill and tactical judgment about what to present, what to concede, and how to frame the importer's position for the best outcome. Having experienced legal counsel engaged immediately — before deadlines pass and before the importer says things that complicate the defense — is essential.

Export Controls: The Other Side of the Trade Equation

Export law is increasingly front-of-mind for US businesses. The Department of Commerce's Bureau of Industry and Security regulates exports of dual-use goods and technologies, and the State Department's Directorate of Defense Trade Controls governs defense articles and services. Violations of export control regulations carry serious criminal and civil penalties — and the enforcement environment has tightened considerably in recent years.

Stein Shostak works with companies to determine whether their products, components, and technology are subject to export restrictions, and to build compliance programs that hold up under scrutiny.

Trade Law Experience That Goes Back to 1933

The international trade landscape changes constantly — tariffs, agreements, enforcement priorities, geopolitical pressures. What doesn't change is the value of counsel that understands the law deeply, knows how CBP operates in practice, and has built the institutional credibility that comes from nearly a century of focused practice.

Stein Shostak Shostak Pollack & O'Hara, LLP brings that depth to every client matter — whether it's a pre-importation ruling request, a classification dispute, a seizure defense, or a comprehensive trade compliance program. If your business imports or exports goods and you want counsel that protects your bottom line before problems develop, call (213) 630-8888 or visit steinshostak.com/practice-areas to start a conversation.