Tariffs
Tariff Circumvention
Legal but questionable practices to reduce tariff payments, such as minimally modifying a product to change its classification.
Legal but questionable practices to reduce tariff payments, such as minimally modifying a product to change its classification.
Unlike evasion (illegal), circumvention uses legal mechanisms to reduce tariffs: minor product modifications, assembly in third countries, or exploiting gaps in tariff classification.
Tariff Evasion
Illegal practices to avoid full or partial tariff payment, such as undervaluation, misclassification, or smuggling.
TradeRules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
TariffsCountervailing Duty
An additional duty levied on imported goods that are subject to dumping or foreign government subsidies, designed to protect domestic industry from unfair trade practices.