In partnership with Cubeship Consolidation Company
*Cross-linked from: Tech Night @ MODEX 2026 Recap | US Market Entry 2026*
A robotics company out of Shenzhen spent two years getting their product ready for the U.S. market. Good hardware. Strong relationships. A distributor lined up in Texas.
Their first shipment of 300 units landed at Long Beach. Three weeks later, it was still there. CBP hold — documentation issue with country of origin. By week four, the Texas distributor canceled the purchase order.
Final tally on that launch: −12% net margin. Not because the product was wrong. Not because the price was wrong. Because the import structure was wrong.
This is not a rare story. It's a common one. And the frustrating part is that almost all of it was avoidable — with tools that exist, cost far less than the losses, and that most Asian brands entering the U.S. market have never heard of.
The U.S. tariff landscape has shifted more in the past two years than in the previous decade. Section 301 tariffs China sourced goods remain in place.
IEEPA tariffs, imposed under emergency economic powers, were ruled unauthorized by courts in 2025. But earlier enforcement actions already created real liability for companies caught in the middle. New authorities are already filling the gap: Section 122 Balance of Payments surcharges up to 15%, new Section 301 USTR investigations actively underway.
For Asian brands, the exposure runs in both directions. Overpaying on duties where tariff mitigation strategies exist. And misclassifying — intentionally or not — where CBP's enforcement is now sharper than it's ever been.
CBP deployed AI supply-chain mapping in 2025 to detect origin washing — the practice of routing goods through third countries to change their origin designation. DOJ's Trade Fraud Task Force runs parallel criminal investigations. The enforcement numbers are real: $53M settlement, $62.5M recovery, a $400M action targeting Southeast Asia transshipment networks.
Country of origin errors are no longer paperwork mistakes. They are enforcement triggers.
For companies managing US import duties across multiple product lines, the risk has never been higher.
The Shenzhen robotics company scenario from the opening isn't hypothetical. Here's the full breakdown:
Wrong structure: HTS code 8479.90 → 23% duty instead of 8%. Freight forwarder adds $4,200 in undisclosed fees. CBP hold: 3 weeks. Distributor cancels. Net margin: −12%.
Right structure: Correct tariff classification saves $8,400 in duties. Consolidated freight cuts costs 22%. Clean documentation clears CBP in 48 hours. Net margin: +18%.
Thirty percentage points of margin swing. Same product. Same shipment. Different structure.
The three strategies that create that difference are ones most brands entering the U.S. market aren't using — not because they're complex, but because nobody told them they existed.
The three strategies below come from Jack C., founder of Cubeship Consolidation Company and a speaker at Tech Night @ MODEX 2026 — Cubework's industry night held in Atlanta in April 2026. Jack works with Asian brands at every stage of U.S. market entry: first shipment, first distribution setup, first time facing CBP. His observation, repeated across hundreds of importer conversations: most brands aren't losing margin because their product is wrong. They're losing it because nobody walked them through the tools that already exist.
These three are the ones that show up most often — and cost the most when they're missing.
Every product entering the U.S. gets classified under a Harmonized Tariff Schedule code — an 8–10 digit number that determines what duty rate applies. The same physical product can legitimately qualify under multiple HTS codes, and the duty rate difference between them can be enormous.
A robotics component classified under HTS 8479.90 carries 25% duty plus Section 301 tariffs. The same component, correctly classified as part of an assembled system under HTS 8479.50, carries 0% MFN duty. That's $62,500 saved on a single $250,000 order — legally, with full documentation.
Most importers assign HTS codes once, at the start of their U.S. entry, and never revisit them. Proper HTS code classification is the foundation of any duty reduction strategy. Reclassification audits routinely surface savings across multiple product lines.
What to do: Before your next major shipment, commission an HTS audit from a licensed customs broker or trade attorney. Flag any product where the duty rate exceeds 5% — those are your highest-yield candidates.
A Foreign Trade Zone is a designated U.S. area where imported goods can be stored, assembled, or manufactured before formally entering U.S. commerce. The key mechanism — the inverted tariff — lets you pay duty at either the component rate or the finished product rate, whichever is lower.
If your raw materials come in at 6% duty and your finished product qualifies at 0%, your duty liability on a $1M import becomes zero. The $60,000 that would have gone to CBP stays in your operation.
FTZs also allow duty deferral — one of the core foreign trade zone benefits that most importers overlook — you don't pay until goods enter U.S. commerce, which improves cash flow on high-volume inventory. Cubework operates facilities near designated FTZ areas in several major logistics corridors. For companies evaluating where to land their U.S. inventory, proximity to an FTZ can materially change the landed cost calculation.
What to do: Map your component vs. finished good duty rates. If the finished good rate is lower, FTZ assembly may eliminate your duty liability entirely. A customs attorney can confirm eligibility in a short consultation.
The U.S. duty drawback program allows eligible importers to recover up to 99% of duties paid. This applies when you import goods into the U.S. and subsequently export any portion of your inventory — as finished goods, as incorporated components, or as re-exported product. This is duty drawback, and the typical annual recovery for eligible importers runs $500K–$2.5M.
Most companies that qualify for drawback aren't filing for it. Not because it's complicated — it isn't, once the documentation process is set up — but because they don't know the mechanism exists.
What to do: If any portion of your imported goods leaves the U.S. — in any form — you likely have unclaimed drawback recoveries. A drawback specialist can assess your duty drawback eligibility in one to two weeks.
On April 20, 2026, CBP launched the CAPE tool — an electronic filing pathway for IEEPA duty refund claims through the ACE Portal.
With IEEPA tariffs having been ruled unauthorized by courts, importers who paid duties under those schedules are now eligible for a customs duty refund. The CAPE tool consolidates claims by importer of record rather than requiring entry-by-entry filing, which significantly reduces the administrative burden. But the window is finite, and the preparation — identifying eligible entries, calculating amounts, meeting CBP documentation standards — takes time.
Legal Commentary — Valerie W. Ho, Greenberg Traurig: "With IEEPA tariffs now ruled unauthorized, importers have a concrete path to recover duties paid on eligible entries. The CAPE tool simplifies the filing process, but identifying eligible entries, calculating the refund amount, and meeting CBP's documentation standards still requires preparation. Companies that acted on IEEPA compliance during the tariff period should review their entry history now — before the window closes."
Source: Greenberg Traurig, "US Trade Update: IEEPA Refund Litigation," 2026.
Greenberg Traurig's Tariff Task Force is currently helping importers identify eligible entries and file through CBP.
HTS reclassification, FTZ structures, and duty drawback can dramatically reduce what you pay. There's one category of compliance risk they can't touch: forced labor.
The Uyghur Forced Labor Prevention Act establishes a rebuttable presumption that any goods manufactured in Xinjiang involve forced labor and are banned from U.S. importation. The burden of proof falls entirely on the importer — and it's a high bar. "Clear and convincing evidence" that goods were not made with forced labor is not a supplier declaration. It's audits, chain-of-custody documentation, and supply chain mapping at the component level.
High-risk categories: cotton and apparel, polysilicon and solar panels, silica-based products, and batteries. For companies sourcing any components from these categories, supply chain tariff risk is existential — mapping isn't optional. It's the only protection you have if CBP holds your shipment.
UFLPA compliance isn't a checkbox — it's an ongoing documentation burden. A UFLPA hold is not resolved by paying a fine. You either have the documentation or you lose the goods.
What to do: Map your supply chain to the component level for any products touching high-risk categories. The California Transparency in Supply Chains Act adds a parallel public disclosure obligation for companies with $100M+ in global receipts doing business in California.
Import structure and warehouse strategy aren't separate decisions — they're the same decision, made in sequence.
Where your inventory lands in the U.S. determines which FTZs you can access, how quickly you can clear CBP, and how efficiently your distribution network functions. Most Asian brands make the warehousing decision too late. They decide after the import structure is locked in, after the first CBP hold, after the first quarter of landed costs that didn't match the financial model.
Cubework operates 50+ locations across the country's major logistics corridors — Los Angeles, Dallas, Chicago, New Jersey, Atlanta — several of which sit near designated FTZ areas. For companies that need foreign trade zone warehouse access as part of their import structure, location is part of the cost equation from day one. More than 5,000 businesses operating in the network at every stage of market entry. The brands that use Cubework as a first step in U.S. distribution aren't just solving a storage problem. They're buying flexibility while they get the import structure right.
The conversation about tariff structure should happen before the first shipment. The conversation about where that inventory lives should happen at the same time.
What is HTS code reclassification and how much can it save?
Every product entering the U.S. gets assigned an HTS code that determines its duty rate. The same product can legitimately qualify under multiple codes — and the gap between them is often large. A single correct reclassification on a $250,000 order can save $60,000+ in duties. Most importers assign a code once at market entry and never revisit it.
How does a Foreign Trade Zone reduce import duty liability?
FTZs let you pay duty at either the component rate or the finished product rate — whichever is lower. If your finished good qualifies at 0% and components come in at 6%, your duty liability on a $1M import drops to zero. FTZs also allow duty deferral, improving cash flow on high-volume inventory. Cubework operates facilities near designated FTZ corridors in several major U.S. logistics markets.
What is duty drawback and who qualifies?
If any portion of your imported goods leaves the U.S. — as finished products, components, or re-exported inventory — you can recover 99% of duties paid. Typical annual recoveries run $500K–$2.5M for eligible importers. Most companies that qualify aren't filing simply because they don't know the mechanism exists.
How do I file for an IEEPA tariff refund using the CAPE tool?
CBP launched the CAPE tool on April 20, 2026 as an electronic filing pathway through the ACE Portal. It consolidates claims by importer of record — no entry-by-entry filing required. You'll need to identify eligible entries, calculate the refund amount, and meet CBP's documentation standards.
The window is finite. Start your entry review now.
Source: Greenberg Traurig, "US Trade Update: IEEPA Refund Litigation," 2026.
What does the Uyghur Forced Labor Prevention Act mean for importers?
UFLPA bans goods manufactured in Xinjiang from U.S. importation and puts the burden of proof entirely on the importer. A supplier declaration isn't enough — you need audits and supply chain mapping at the component level.
High-risk categories include cotton, polysilicon, silica-based products, and batteries. A UFLPA hold isn't resolved by paying a fine. You either have the documentation or you lose the goods.
How does warehouse location affect import tariff strategy?
Where your inventory lands determines which FTZs you can access, how quickly you clear CBP, and how your distribution network performs. Most Asian brands make the warehousing decision after the import structure is locked — which limits every option downstream. Cubework operates 74+ locations across Los Angeles, Dallas, Chicago, New Jersey, and Atlanta, giving brands flexibility to align warehouse placement with import strategy from day one.
What are the biggest import compliance mistakes Asian brands make entering the U.S.?
Assigning HTS codes once and never auditing them. Skipping FTZ eligibility assessment. Not knowing duty drawback exists until after the first year of imports.
And treating country-of-origin documentation as a formality — CBP now uses AI supply chain mapping to detect origin errors, and the consequences are real. The fix is consistent: structure the import operation before the first shipment, not after the first CBP hold.
Tariff structure, trade compliance, and warehousing infrastructure are decisions that compound on each other — and the cost of getting them wrong shows up before your first unit sells.
We're putting together a comprehensive guide for Asian brands entering the U.S. market in 2026, developed in collaboration with Cubeship Consolidation Company: how to reduce import duty liability, what trade compliance actually requires, and how to build a warehouse operation that scales without locking into infrastructure too early.
These topics were at the center of Tech Night @ MODEX 2026 — Cubework's industry night in Atlanta. Operators and logistics professionals broke down exactly what's shifted in 2026. They also shared what it means for market entry. Read the full recap to see what was covered → Tech Night @ MODEX 2026
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This article is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, consult a licensed trade attorney or customs advisor.
Cubework hosted Tech Night @ MODEX 2026 on April 14, 2026 in Atlanta. For the full event recap, visit cubework.com.
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