Newsletter
The value of goods imported to the United States in Fiscal Year 2024 was $893.15 billion, and as a result, U.S. Customs and Border Protection (“CBP”) collected $24.37 billion in duties, taxes and fees for those imports.1 Given the flurry of emergency tariffs that President Donald Trump has implemented since taking office, those numbers are guaranteed to increase. To ensure that importers are accurately reporting the value, origin and classification of goods, the government may increase customs and tariffs enforcement through the False Claims Act, which prohibits any knowing obligation to pay monies due to the federal government, i.e., a customs duty.
The Interaction Between Tariffs, Customs Duties and CBP
In simplest terms, a customs duty is a tariff or tax imposed on goods entering the United States. The United States sets forth articles for which a customs duty must be paid, and each article has a specific duty rate, which is determined by several factors, including where you acquired the article, where it was made and what it is made of. An ad valorem tariff, such as the duties at issue in the new executive orders, functions as a tax on imported goods levied as a percentage of the imported goods’ value.2 The Harmonized Tariff Schedule of the United States (HTSUS) provides ad valorem duty rates for any potential item being imported.
CBP is the agency primarily responsible for administering United States customs laws and regulations. To determine the applicable...
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