Tariffs, Compliance, and Complexity

Global eCommerce has never moved faster — or faced more scrutiny. As Helaine Rich explains, 70% of cross-border shipments are now being inspected for proper tariff classification, and customs clearance times have increased by nearly 40%. For retailers, that means every detail in your documentation matters.

From HS codes to declared values and tax IDs, errors now trigger both delays and penalties. “You can’t just guess an HS code,” Rich warns. “Authorities are checking declared values against your website listings — transparency is the only safe strategy.”

The New Rules of Cross-Border Shipping

Rich highlights a growing list of compliance must-haves:

• Accurate HS codes: Essential for correct duties and taxes. Misclassifications can cost thousands.

• Clear documentation: Missing or vague descriptions lead to customs holds.

• Avoiding “stop words”: Certain terms — like “champagne” for color — can trigger rejections in markets like France.

• Correct declared values: Customs now verifies online retail prices; under-declaration risks losing access to entire markets.

• Tax ID accuracy: Countries increasingly require both sender and recipient IDs for clearance, with rising penalties for errors.

Adapting to New Tax Structures

The global tax landscape is evolving quickly. Rich references IOSS (Import One-Stop Shop) in the EU and new regulations across Asia and North America requiring importer and recipient IDs. Each change demands flexibility — and trusted partners who can stay ahead of country-specific updates.

“Just because you can ship doesn’t mean you should — not until you understand every tax, rule, and ID requirement,” she cautions.

Reducing Risk Through Smarter Infrastructure

For retailers balancing tariffs and cost control, Rich offers strategic alternatives:

• Hybrid carrier models: Avoid dependence on single carriers (as seen in Canada Post strikes).

• Bonded warehouses: Store imported goods tax-free until needed, freeing up cash flow.

• Foreign trade zones: Import, relabel, and export without incurring U.S. import duties.

These tactics, she notes, can improve margins and protect continuity during peak disruptions.

Peak Season Readiness

As the holiday surge approaches, preparation is everything. Rich advises brands to:

• Communicate early with customers about expected delivery windows.

• Set realistic SLAs based on shifting carrier capacity.

• Implement multi-carrier redundancy to avoid strike or delay risks.

• Use Delivery Duties Paid (DDP) for a smoother customer experience and fewer rejections.

“The worst social post you can get is: ‘My Christmas was ruined because the parcel didn’t arrive.’”

Rich also emphasizes tracking visibility and returns processes to reclaim duties and taxes on returned goods — often an overlooked opportunity to recover margin.

A Compliance Checklist for 2025

To close, Rich challenges attendees to score themselves on a 100-point readiness diagnostic covering:

• HS code validation

• Automated commercial invoices

• Broker relationships

• Tax ID security

• Multi-carrier capabilities

• Strike contingency plans

• Transparent landed cost calculators

Those scoring above 75 are “in good shape,” but for most, she notes, there’s work to be done.

“Compliance isn’t just paperwork — it’s profit protection. The right preparation means fewer surprises, faster clearances, and happier customers.”