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5 Key Considerations for Tariff Engineering + The Athleisure Market Boom

We break down five essential factors for effective tariff engineering to help you optimize duty costs and stay compliant. Plus, we dive into the athleisure market's rapid growth, exploring key trends, supply chain challenges, and how brands are adapting to shifting consumer demands.

The Art and Strategy of Tariff Engineering

Tariff engineering, as explained by Alex Aponte, Director of Customs at Importal, is the strategic modification of products to optimize their classification and reduce duty costs during importation, requiring a deep understanding of the Harmonized Tariff Schedule of the US (HTSUS) and the products being imported. By analyzing product description, material composition, and intended use, importers can experiment with design changes—such as Converse’s adjustment to their shoe materials—to achieve a more favorable duty rate while ensuring compliance with CBP regulations.

Key Considerations for Tariff Engineering:

  • Understanding HTSUS: Familiarity with classification rules and terminology.

  • Product Knowledge: Detailed awareness of materials, weight, and intended use.

  • Classification Questions:

    • How is the product described and marketed?

    • What materials are used, and which is predominant by weight?

    • What is the intended use of the product?

  • Compliance & Risks: Avoiding misclassification, penalties, and audits.

  • Expert Consultation: Working with customs brokers or trade attorneys for accurate classification and compliance.

International Container Shipping Rates

The Drewry WCI composite index fell 4% to $2,168 per 40ft container—79% below its 2021 peak but 53% above 2019 levels—while freight rates declined across major routes except for slight increases from Rotterdam to Shanghai and Los Angeles to Shanghai, with further decreases expected in the coming weeks.

Like What You See?

Ecommerce on Tap

Join hosts Nathan and Aaron as they explore the hot trends, challenges, and opportunities within the booming Athleisure market. From Lululemon's innovative history to Vuori's stylish board shorts—get ready for an insightful exploration into how this $389 billion industry is reshaping our wardrobes!

Key Highlights:

  • Market Trends: Did you know the Athleisure market is expected to reach a staggering $1 trillion by the early 2030s? Discover the growth factors driving this trend.

  • Innovation & Sustainability: Learn about the cutting-edge materials that are not only enhancing performance but also tackling environmental concerns. From recycled ocean plastics to biodegradable fabrics—find out how brands are stepping up their game.

  • Going Niche: Whether it’s Noble’s CrossFit-focused apparel or specialized gear for ultra-marathons, Nathan delves into how finding your niche can be a game-changer in this saturated market.

  • Global Supply Chain Insights: Get the inside scoop on where Athleisure garments are made and how tariffs and sustainability efforts are impacting the industry.

💡 Thinking of Starting an Athleisure Brand?

If you're an aspiring founder, this episode serves up some invaluable insights. Aaron and Nathan discuss key strategies and the profit margins you should anticipate if you're looking to enter this dynamic space.

🔍 What's Next on the Podcast?

We're gearing up for more exciting stories from industry innovators. Next week, we're diving into the incredibly popular Alo Yoga. You won’t want to miss it!

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