Import duties are one of the most unpredictable—and expensive—parts of international trade. For American business owners like Ron who import goods from China, duties can shrink already tight margins. What many don’t realize is that freight forwarders can actually help you minimize those costs—legally and strategically.

Freight forwarders help control import duties by advising on proper HS codes, selecting duty-friendly Incoterms, optimizing shipping routes, and ensuring accurate customs declarations that prevent overpayment.

At GeeseCargo, we’ve helped many importers reduce duty costs not by shortcuts, but by smart planning. Here’s how we help businesses ship smarter and pay only what’s necessary—no more, no less.

How Does Proper HS Code Classification Save Money?

One of the most overlooked causes of high import duties is incorrect HS code classification. A single misclassified product can be charged 5–10% more in duty than necessary.

Freight forwarders ensure correct HS code selection by researching product specifications, comparing tariff schedules, and verifying past customs records to avoid costly misclassification.

What Are the Risks of HS Code Errors?

• Overpaying duties unnecessarily
• Triggering customs red flags or audits
• Delayed clearance due to misclassification

At GeeseCargo, we use digital tariff tools and product consultations to double-check every HS code. For Ron, we helped reclassify a shipment of accessories, cutting his duty rate from 11% to 6.5%.

Can One Product Have Multiple HS Code Options?

Yes. Depending on materials or usage, a product might qualify under different codes with different rates. A forwarder’s role is to choose the most appropriate and favorable one.

Can Incoterms Affect Who Pays the Duty?

Many importers use Incoterms like FOB or CIF without realizing how they affect their total landed cost. Who pays the import duty? Who handles customs? It’s all in the Incoterm.

Freight forwarders help importers reduce duty impact by advising on the most suitable Incoterms for their shipments, like DDP or FOB, depending on control and responsibility.

Which Incoterm Gives the Most Control?

FOB (Free On Board) gives importers the most control over customs declarations and HS code classification. This allows freight forwarders like us to optimize the duty payment process on your behalf.

When Is DDP a Better Option?

For clients like Ron who want to avoid customs interaction entirely, we offer DDP (Delivered Duty Paid). We calculate all duties upfront and include them in one quote, helping with budgeting and predictability.

How Can Route Planning Lower Tariff Impact?

Not all shipping routes are equal when it comes to duties. Some countries have trade agreements that reduce or eliminate certain tariffs when routing is handled correctly.

Experienced freight forwarders use multi-leg shipping routes, transshipment points, and origin declarations to take advantage of duty-free or reduced-duty pathways.

Can Routing Through Another Country Change Duty?

Yes, in some cases. For example, routing through ASEAN countries may allow reclassification under regional trade agreements. We helped one client shift through Vietnam to apply a different duty structure, legally reducing costs by 4%.

What About Country of Origin Rules?

We advise clients on how country of origin declarations affect duty rates. If a product’s raw materials or assembly location qualifies under a trade agreement, you may be eligible for reduced tariffs. Proper documentation is key—and we prepare it.

How Do Accurate Declarations Prevent Overpayment?

Sometimes the problem isn’t the duty rate—it’s the declared value. If it's too high due to incorrect cost calculations, duties go up. If it’s too low, it risks a customs penalty. Accuracy is everything.

Freight forwarders ensure accurate customs declarations by checking invoice values, confirming freight and insurance inclusions, and preparing supporting documents to justify declared figures.

What Is the Declared Value Based On?

It usually includes the product price, freight cost, and insurance (CIF). Many importers overstate it by accident. We help strip unnecessary items that customs doesn’t require, keeping the declaration clean and within legal bounds.

What If You’re Audited?

With full transparency, backup paperwork, and professional customs brokers on our side, audits rarely become a problem. We stand by our documents and help you respond quickly and confidently.

Conclusion

Controlling import duties isn’t about bending rules—it’s about knowing them. With the right HS code, smart Incoterms, strategic routing, and precise documentation, freight forwarders like GeeseCargo help businesses avoid overpaying at the border. For clients like Ron, every percentage saved boosts margins and builds confidence. Let us help you land every shipment smarter—and cheaper.