In the complex world of international commerce, the country of origin plays a crucial role in shaping trade policies. It influences tariffs, import restrictions, and regulatory compliance, affecting how goods move across borders. Understanding this concept is essential for businesses, policymakers, and consumers alike. Here, we explore how the country of origin impacts trade policies, providing practical insights and examples to help navigate global trade effectively. Schulz Trade Law Services include Country of Origin Determination . The Role of Trade Policies in Global Commerce Trade policies are the rules and regulations that govern the exchange of goods and services between countries. These policies determine tariffs, quotas, subsidies, and standards that affect international trade flows. Governments use trade policies to protect domestic industries, promote exports, and ensure national security. Trade policies can be broadly categorized into: Tariffs : Taxes imposed on imported goods to make them more expensive and less competitive compared to local products. Quotas : Limits on the quantity of certain goods that can be imported or exported. Subsidies : Financial support provided to local businesses to enhance their competitiveness. Non-tariff barriers : Regulations such as safety standards, labeling requirements, and licensing that affect trade. The country where a product is made often determines which trade policies apply. For example, goods originating from countries with free trade agreements may enjoy reduced tariffs or exemptions. Conversely, products from countries under trade sanctions may face strict restrictions. International shipping port with containers How Trade Policies Are Influenced by Country of Origin Trade policies are closely linked to the country of origin because governments use this information to apply specific rules. The country of origin is the country where a product is manufactured, assembled, or substantially transformed. It is a key factor in customs declarations and trade compliance. Here are some ways the country of origin influences trade policies: Tariff Classification and Rates Customs authorities apply tariffs based on the product’s origin. For instance, under the United States-Mexico-Canada Agreement (USMCA), goods made in member countries benefit from lower tariffs compared to those from non-member countries. Trade Agreements and Preferences Countries often enter into bilateral or multilateral trade agreements that grant preferential treatment to goods from partner nations. This can include reduced tariffs, simplified customs procedures, or exemption from quotas. Anti-Dumping and Countervailing Duties If a country believes that imported goods are priced unfairly low or subsidized, it may impose additional duties on products from specific countries to protect domestic industries. Sanctions and Embargoes Trade policies may restrict or prohibit imports from certain countries due to political or security reasons. These restrictions are strictly enforced based on the product’s country of origin. Labeling and Compliance Requirements Products must often carry labels indicating their country of origin. This transparency helps consumers make informed choices and ensures compliance with trade regulations. Understanding these influences helps businesses plan their supply chains, pricing strategies, and market entry approaches effectively. Customs officer inspecting products What is an example of country of origin? To illustrate the concept of country of origin, consider a smartphone assembled in Mexico using components manufactured in China and South Korea . Determining the country of origin for trade purposes depends on where the product underwent its last substantial transformation. In this case, if the assembly in Mexico significantly changes the product’s form, function, or use, Mexico would be considered the country of origin. This classification affects the tariffs applied when the smartphone is imported into the United States under the USMCA agreement. Another example is textiles. If fabric is woven in India but cut and sewn into garments in Bangladesh, the country of origin might be Bangladesh if the sewing process is deemed the substantial transformation. These examples highlight the importance of understanding the rules of origin, which vary by product and trade agreement. Businesses must carefully document and verify the origin to benefit from trade preferences and avoid penalties. /di Textile factory with workers sewing garments Practical Recommendations for Businesses Navigating Trade Policies For companies engaged in international trade, managing the impact of country of origin on trade policies is critical. Here are actionable recommendations: Conduct a thorough origin analysis Determine where your products undergo substantial transformation. Consult trade experts or legal advisors to ensure accurate classification. Stay updated on trade agreements Monitor changes in trade agreements and tariffs that may affect your supply chain. Use government resources and trade databases for the latest information. Maintain detailed documentation Keep records of manufacturing processes, supplier certifications, and shipping documents to prove the country of origin during customs inspections. Leverage trade compliance software Use technology to automate classification, track regulatory changes, and generate compliance reports. Plan supply chains strategically Consider sourcing and manufacturing locations that optimize tariff benefits and minimize trade barriers. Train staff on trade regulations Educate your team on the importance of country of origin and trade policy compliance to avoid costly mistakes. By implementing these strategies, businesses can reduce risks, lower costs, and improve their competitiveness in global markets. The Future of Trade Policies and Country of Origin Considerations Trade policies continue to evolve in response to geopolitical shifts, economic trends, and technological advancements. The significance of the country of origin remains central, but new challenges and opportunities are emerging. Digital trade and e-commerce As online sales cross borders, verifying the country of origin for small shipments becomes more complex, requiring innovative solutions. Sustainability and ethical sourcing Consumers and regulators increasingly demand transparency about where products come from, pushing companies to disclose origin information more clearly. Trade tensions and protectionism Political conflicts may lead to stricter origin rules and increased scrutiny of supply chains. Automation and AI in customs Advanced technologies will enhance the accuracy and speed of origin verification, improving compliance and reducing delays. Businesses that stay informed and adaptable will be better positioned to navigate these changes. Understanding how the country of origin impacts trade policies is not just a regulatory necessity but a strategic advantage in the global marketplace. For more detailed information on the topic, visit country of origi n, or reach out to Schulz Trade Law today .

Slash Import Duties with the First Sale Rule: A Comprehensive Guide to Requirements, Pitfalls, and Resources Schulz Trade Law PLLC May 28, 2025 In the wake of recent tariff adjustments under the Trump administration, U.S. importers are seeking innovative ways to minimize duty exposure while ensuring compliance with U.S. Customs and Border Protection (CBP) regulations. The First Sale Rule  offers a powerful customs valuation strategy that can significantly reduce duty costs in multi-tiered transactions—if executed correctly. This guide explores the mechanics of the First Sale Rule , its critical requirements, common pitfalls, and practical resources to help importers unlock its benefits. Download our Step-by-Step PDF Guide for The First Sale Rule. Understanding the First Sale Rule The First Sale Rule allows importers to declare the manufacturer’s “first sale” price —the price paid by a middleman to the manufacturer—as the dutiable value, rather than the middleman’s higher invoice price to the U.S. importer. By using the lower first sale price, importers can reduce their duty liability, especially for goods subject to high duty rates or imported in large volumes. How It Works: A Real-World Example Imagine a manufacturer in Bangladesh sells a pair of jeans to a Singapore trading company for $8 per unit. The trading company resells the jeans to a U.S. importer for $15 per unit. With a duty rate of 30%: Without First Sale Rule : Duties are based on the $15 invoice price, resulting in $4.50 per unit in duties. With First Sale Rule : Duties are based on the $8 first sale price, resulting in $2.40 per unit in duties. Example: For a shipment of 50,000 pairs of jeans, the First Sale Rule saves $105,000  ($225,000 vs. $120,000 in duties). These savings can transform an importer’s cost structure, enhancing competitiveness in price-sensitive markets. Close-up of trade documents with a magnifying glass highlighting compliance terms, illustrating documentation needs for the First Sale Rule Key Requirements for the First Sale Rule To apply the First Sale Rule, importers must satisfy three CBP criteria, each requiring meticulous documentation and a fact-based analysis. CBP evaluates the totality of the circumstances  to determine eligibility.[^4] Goods Destined for the U.S. The goods must be clearly intended for export to the U.S. from the time of manufacture through final delivery. This intent must be documented in contracts, purchase orders, and shipping records. Goods produced for multiple markets or redirected to the U.S. mid-transit may not qualify. Arm’s Length Transactions.  Each sale in the transaction chain must be at arm’s length, meaning the price is unaffected by relationships between parties. For unrelated parties, arm’s length is presumed. For related parties (e.g., a manufacturer and its subsidiary), importers must prove the price reflects market value, often through a transfer pricing study  or comparable unrelated-party transactions.[^5] Bona Fide Sales.  Each transaction must involve a genuine sale, with a transfer of title and risk of loss for a meaningful period. CBP scrutinizes whether the middleman assumes ownership and risk, even briefly. Transactions involving “flash title”—where title passes momentarily without risk transfer—are unlikely to qualify.[^6] Common Pitfalls and Mitigation Strategies The First Sale Rule’s benefits come with compliance challenges. CBP’s increased scrutiny means importers must anticipate and address potential issues proactively. Below are the most common pitfalls and how to avoid them: Goods Not Destined for the U.S.  If goods are manufactured for a global market or rerouted to the U.S. after production, CBP may reject the first sale valuation. Solution : Ensure all documentation—purchase orders, contracts, and shipping records—explicitly designates the U.S. as the destination from the outset. Work with suppliers to align production and logistics with U.S. export intent. Insufficient Documentation  CBP requires a comprehensive paper trail, including contracts, invoices, payment records, proof of title transfer, and shipping documents. Gaps or inconsistencies can lead to audits or duty reassessments.[^7] Solution : Develop a standardized documentation checklist and retain records for at least five years, as required by CBP. Use digital trade platforms to centralize and organize documents. Flash Title Issues Transactions where the middleman holds title fleetingly (e.g., during transit) may not meet the bona fide sale requirement. Solution : Structure agreements to ensure the middleman assumes meaningful risk, such as through insurance, liability clauses, or inventory holding periods. Document these arrangements clearly. Related-Party Pricing Issues For related parties, CBP closely examines whether the first sale price aligns with market rates. Failure to substantiate arm’s length pricing can disqualify the first sale. Solution : Conduct a transfer pricing analysis or benchmark prices against unrelated-party transactions. Engage customs or tax professionals to validate pricing methodologies. Industries Poised for Savings The First Sale Rule is particularly impactful for industries with high duty rates or complex supply chains. Key beneficiaries include: Apparel and Textiles : Duty rates of 15%–40% make first sale savings substantial. Electronics : High-value goods with moderate duties benefit from lower dutiable values. Footwear : High duties (up to 37.5%) amplify savings potential. Consumer Goods : Products like toys or housewares with multi-tiered supply chains are prime candidates. For instance , an electronics importer sourcing components through a Taiwan distributor could declare the manufacturer’s price in China, reducing duties significantly. Similarly , a footwear retailer importing sneakers via a trading company could save millions annually by leveraging the first sale. Advanced Considerations Beyond the basics, importers should consider the following to maximize the First Sale Rule’s benefits: Supply Chain Optimization : Restructure supply chains to ensure clear U.S. export intent and robust middleman roles. This may involve renegotiating contracts or selecting middlemen with established risk-bearing capacity. CBP Advance Rulings : For high-value or complex transactions, request a binding ruling  from CBP to confirm first sale eligibility. This reduces audit risk and provides certainty.[^9] Integration with Other Duty-Saving Programs : Combine the First Sale Rule with programs like Foreign Trade Zones (FTZs)  or Duty Drawback  to amplify savings. Consult a trade expert to explore synergies.[^10] Audit Preparedness : CBP’s focus on valuation means audits are likely. Conduct internal compliance reviews to identify vulnerabilities and strengthen documentation. Step-by-Step Guide to Implementation To adopt the First Sale Rule effectively, follow these steps: Assess Eligibility.  Analyze your supply chain to confirm the goods are destined for the U.S., transactions are at arm’s length, and sales are bona fide. Identify all tiers and parties involved. Build a Documentation Framework.  Collaborate with suppliers and middlemen to collect and organize required documents, including contracts, invoices, payment records, and proof of title transfer. Use a checklist to ensure completeness. Validate Pricing.  For related-party transactions, conduct a transfer pricing study or market benchmarking to substantiate arm’s length pricing. Retain supporting data for CBP review. Seek Expert Guidance.  Engage customs attorneys, trade compliance specialists, or transfer pricing consultants to review your first sale strategy and address complex issues like related-party pricing or flash title risks. Monitor and Audit.  Regularly review your first sale program to ensure compliance as supply chains, tariffs, or CBP policies evolve. Conduct periodic internal audits to identify and resolve gaps. Network of resources for First Sale Rule and compliance. Essential Resources for Importers To support your First Sale Rule implementation, leverage these resources: CBP Informed Compliance Publications : Review CBP’s “First Sale” publication  for detailed guidance and case studies.[^11] CBP Rulings Online Search System (CROSS) : Search CROSS  for precedent rulings on first sale valuations specific to your industry or product.[^12] U.S. International Trade Commission (USITC) : Use the Harmonized Tariff Schedule  to determine duty rates and estimate savings potential.[^13] Trade Associations : Organizations like the American Association of Exporters and Importers (AAEI)  and the National Customs Brokers & Forwarders Association of America (NCBFAA)  offer training, webinars, and compliance tools.[^14][^15] World Customs Organization (WCO) : Explore the WCO’s Customs Valuation Compendium  for global valuation standards that inform CBP’s approach.[^16] Schulz Trade Law PLLC : Our team specializes in customs valuation and compliance. For tailored advice or to request a first-sale feasibility assessment, email info@schulztradelaw.com . Why Act Now? With CBP intensifying its focus on customs valuation and tariff policies shifting, relying on outdated or assumption-based strategies is a recipe for audits, penalties, or missed savings.[^17] The First Sale Rule is more than a compliance tool—it’s a strategic lever  to reduce costs, enhance profitability, and gain a competitive edge. However, its success depends on rigorous planning, documentation, and compliance. The First Sale Rule can unlock significant savings if you’re importing apparel, electronics, footwear, or consumer goods. Don’t let complexity deter you—our team at Schulz Trade Law PLLC is ready to guide you through every step, from feasibility analysis to CBP ruling requests. Ready to slash your duty costs? Contact us today to explore how the First Sale Rule can transform your import strategy. About Us Schulz Trade Law PLLC is a boutique law firm dedicated to customs, trade compliance, and international trade law. Follow us on LinkedIn  for actionable insights and updates. Subscribe  to our blog to receive updates. Sources 1 . U.S. Customs and Border Protection, “Customs Valuation Encyclopedia,” https://www.cbp.gov/trade/rulings/informed-compliance-publications. 2. U.S. Customs and Border Protection, “What Every Member of the Trade Community Should Know About: First Sale,” Informed Compliance Publication, https://www.cbp.gov/trade/rulings/informed-compliance-publications. 3. U.S. International Trade Commission, “Harmonized Tariff Schedule of the United States,” https://hts.usitc.gov/. 4. U.S. Customs and Border Protection, “Customs Valuation Encyclopedia,” https://www.cbp.gov/trade/rulings/informed-compliance-publications. 5. World Customs Organization, “Customs Valuation Compendium,” http://www.wcoomd.org/en/topics/valuation.aspx. 6 U.S. Customs and Border Protection, “What Every Member of the Trade Community Should Know About: First Sale,” Informed Compliance Publication, https://www.cbp.gov/trade/rulings/informed-compliance-publications. 7. U.S. Customs and Border Protection, “Recordkeeping,” https://www.cbp.gov/trade/recordkeeping. 8. U.S. International Trade Commission, “Harmonized Tariff Schedule of the United States,” https://hts.usitc.gov/. 9 . U.S. Customs and Border Protection, “Rulings Program,” https://www.cbp.gov/trade/rulings. 10. U.S. Customs and Border Protection, “Foreign Trade Zones,” https://www.cbp.gov/trade/programs-administration/foreign-trade-zones. 11. U.S. Customs and Border Protection, “What Every Member of the Trade Community Should Know About: First Sale,” Informed Compliance Publication, https://www.cbp.gov/trade/rulings/informed-compliance-publications. 12. U.S. Customs and Border Protection, “CBP Rulings Online Search System (CROSS),” https://rulings.cbp.gov/. 13. U.S. International Trade Commission, “Harmonized Tariff Schedule of the United States,” https://hts.usitc.gov/. 14. American Association of Exporters and Importers, “Resources,” https://www.aaei.org/resources. 15. National Customs Brokers & Forwarders Association of America, “Education,” https://www.ncbfaa.org/education. 16. World Customs Organization, “Customs Valuation Compendium,” http://www.wcoomd.org/en/topics/valuation.aspx. 17. U.S. Customs and Border Protection, “Trade Enforcement,” https://www.cbp.gov/trade/trade-enforcement .

Beating the Tariff Tsunami: Trade Strategies You Need to Know Simply Trade Podcast Feb 13, 2025 In the ever-changing landscape of international trade, compliance professionals are the unsung heroes, tasked with steering their organizations through the choppy waters of tariffs, regulations, and shifting policies. The world of international trade has been in a state of flux, with tariffs, trade wars, and policy changes with the Trump administration creating a complex and often unpredictable environment for businesses when considering trade strategies. In this episode, we sit down with Michelle Schultz and Marina Mekheil from Schultz Trade Law to explore practical solutions for navigating these turbulent waters. As seasoned professionals with experience in both the public and private sectors, they offer a unique perspective on how companies can stay ahead of the curve and protect their bottom line. Key Points The Simply Trade podcast dives into the turbulent world of trade compliance, unpacking the challenges and opportunities presented by fluctuating tariffs and global trade tensions. Joined by Michelle Schulz and Marina Mekheil from Schulz Trade Law , the conversation offers a wealth of practical insights for companies navigating this high-stakes landscape. The discussion kicks off with a stark reality: trade compliance is no longer a back-office function but a strategic asset. Schulz and Mel stress that compliance teams can save companies significant costs by leveraging tools like Chapter 98 provisions, duty drawback programs, and free trade agreements. Chapter 98, often underutilized, allows duty-free treatment for goods like U.S. products returned after repair or processing abroad, but it demands meticulous documentation. Similarly, duty drawback programs, while complex and slow—sometimes taking years—can recover paid tariffs if companies maintain impeccable records and navigate inventory methods like FIFO or LIFO. Proactive Engagement A recurring theme is the need for proactive engagement. Schulz emphasizes integrating trade experts early in supply chain decisions, contract negotiations, or market expansions to avoid costly last-minute fixes. This foresight is critical in a world where tariffs can shift overnight, as illustrated by sudden changes in Colombia’s trade policies. Agility, the experts argue, is non-negotiable. The episode also underscores the evolving role of compliance as a value center . Far from merely avoiding penalties, compliance teams can recover funds and drive savings, making them indispensable at the executive table. However, this requires clear, concise communication. Mekheil highlights the importance of distilling complex tariff impacts into actionable briefings for time-strapped executives, ensuring informed decisions and management support. Teamwork Collaboration emerges as another key takeaway. Effective tariff mitigation often hinges on teamwork between trade lawyers, customs brokers, and internal compliance staff. Whether setting up foreign trade zones or filing drawback claims, this multidisciplinary approach tailors solutions to a company’s unique needs. Next Steps Investigate audit classifications, understand cost drivers, and stay adaptable. For compliance professionals and executives alike, the message is clear: embrace trade compliance as a strength to not only survive but thrive in today’s unpredictable trade environment. About Us We are a dedicated team of trade law professionals, committed to helping businesses navigate the complexities of international regulations and tariffs. With deep industry knowledge and a client-first approach, we provide clear, actionable insights to protect your interests and drive success in a dynamic global market. Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.

Tariffs Tighten on Furniture and Wood Michelle Schulz Explains What’s Ahead for U.S. Buyers and Businesses International trade attorney Michelle Schulz outlines how new furniture and cabinetry tariffs— rising as high as 50% —are set to increase prices and pressure both importers and consumers. October 17, 2025 WBAP Morning News WBAP News Host: Ernie Brown  and Carla Marion New Tariffs Take Effect During her interview with WBAP Radio in Dallas–Fort Worth, Michelle Schulz confirmed that the latest round of tariffs is already being felt across the furniture and cabinetry markets. “As of Tuesday, the new thing is furniture, wood cabinetry, kitchen cabinets that are imported are subject to a 25% tariff,” she said. “Vanities and associated products also 25%. Furniture and other cabinetry can go up to 50%, and we’re expecting this to increase to 50% for everything by January 1.” Schulz noted that the changes are happening fast and may continue to fluctuate: “I can’t predict if this will really happen or if this will change again, but this week, it’s happening.” Rising Costs and Consumer Confusion When asked whether consumers can see the tariff costs reflected in retail prices, Schulz explained that it’s not always transparent. “You might see a line that shows a tariff charge—or you might not,” she said. “There’s no requirement that a company show you which part is the tariff. But our clients are hiking up prices because they can’t keep up.” With supply chains still strained from earlier trade actions, the combination of new duties and high material costs could make furniture, cabinetry, and home goods even more expensive heading into 2026. How Tariffs Are Applied Schulz also broke down how tariffs are actually assessed—a common source of confusion among consumers. “The tariff is assessed at the time of customs entry,” she said. “Your tariff depends on what the tariff code was for the item at the time of entry. If you import a complete piece of furniture, you pay the tariff on the complete piece. If you’re importing components to assemble here, the tariff is on the components coming in.” She added that correct classification is critical: “ It’s important to understand whether your tariff coding is correct. If it’s not, you could be overpaying—or facing compliance problems later.” Tariff classifications, rates, and enforcement are shifting rapidly—and they directly affect your bottom line. If your business imports furniture, wood products, or other home goods, contact Schulz Trade Law today  to review your tariff codes, ensure compliance, and identify cost-saving opportunities before the next round of increases. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.

Tariffs, Emergencies, and Executive Power Michelle Schulz on What the Supreme Court’s Ruling Could Mean for Businesses Trade attorney Michelle Schulz explains the Supreme Court’s scrutiny of Trump’s tariff authority, why the case could redefine executive power, and how billions in refunds could reshape trade compliance. November 6, 2025 All Talk with Kevin Dietz WJR Radio Detroit, Michigan Anchor:  Kevin Dietz The Supreme Court Puts Tariff Power Under the Microscope Following the Supreme Court’s oral arguments on President Trump’s tariffs, international trade attorney Michelle Schulz , founder of Schulz Trade Law, shared her insights on WJR Radio Detroit . She noted that justices across the spectrum pressed both sides on the limits of executive authority. “They had a lot of tough questions for the U.S. government about whether the President really has this authority to do something on his own as broad as applying taxes,” Schulz said. “They will consider whether this is, in fact, an emergency and also if this is just too broad, because the President has asserted that there is an extraordinary threat due to our trade deficit.” Schulz observed that the justices appeared skeptical that a trade imbalance alone could qualify as an emergency. “It’s hard to pin down where the exact threat is,”  she said. History and Precedent: Has This Ever Been Done Before? The Court’s questioning frequently turned to history—specifically whether any prior president had used the International Emergency Economic Powers Act (IEEPA)  to impose tariffs. Schulz, who has practiced trade law for over two decades, said she had never seen it used this way. “The IEEPA is typically used when we have something dangerous that we don’t want to go out of the country, like sanctions or export controls,” she explained. “Not for leverage in trade agreements and tariffs.” She added that the government’s only historical example—President Nixon’s temporary 10% tariff in the 1970s—was narrow and short-lived. “That was very limited,” she said. “Here we have an emergency act being used to allow unlimited tariffs. We don’t have any precedent for this.” Possible Outcomes: Refunds, Administrative Chaos, and Future Limits If the Supreme Court strikes down the tariffs, Schulz expects a long, complex refund process. “It would be an administrative burden on both customs and importers that is astronomical,” she said. “It probably will be a mess—but that doesn’t change whether the law actually covers tariffs or not.” At the same time, Schulz pointed out that the ruling could reshape presidential flexibility during future global crises. “It could limit flexibility,” she acknowledged, “but presidents will still have plenty of avenues to act—through export controls, national security laws, and unfair trade investigations under the Commerce Department or the U.S. Trade Representative.” Her bottom line: “It’s almost impossible to say one administration is overreaching when both have claimed unlimited authority to tax U.S. importers. This case may finally define where that line is.” The Supreme Court’s decision will affect not only Washington’s trade policy—but also how every importer plans, prices, and reports their goods. If your business is navigating tariffs or preparing for potential refunds, contact Schulz Trade Law today  for guidance on compliance strategy, refund processes, and long-term trade planning. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.

The Supreme Court’s “Trillion-Dollar Test” Michelle Schulz on Tariffs, Emergencies, and Executive Power As the Supreme Court weighs whether President Trump overstepped his authority with sweeping tariffs, trade attorney Michelle Schulz explains why the stakes reach from Wall Street to Main Street. November 5, 2025 KNX Midday News Los Angeles Anchor:  Brian Ping The “Emergency” at the Heart of the Case During her interview with KNX Radio Los Angeles , international trade attorney Michelle Schulz  explained that the Supreme Court is examining whether President Trump legally invoked the International Emergency Economic Powers Act (IEEPA)  to impose tariffs without congressional approval. “That was the initial launch of the IEEPA tariffs,” Schulz said. “It was aimed at China, Mexico, and Canada for the fentanyl crisis—which, I don’t know if that’s considered an emergency or not.” What began as a narrow policy has since expanded. “It then expanded in April to the reciprocal tariffs—those country-by-country tariffs that range all the way from 10% to 50% and continue to be arbitrarily assessed depending on how the executive branch feels about that country.” A Question of History and Legitimacy Schulz emphasized that this use of IEEPA has no real precedent in modern trade law. “Historically, the IEEPA has not been used for this purpose,” she said. “The government argued that President Nixon achieved a 10% tariff under the Trading with the Enemy Act back in the 70s—but that’s not the same thing. That was limited, and that was a long time ago.” The conservative justices, Schulz noted, appeared skeptical that a years-long trade policy could qualify as an “emergency.” The ruling could determine whether future presidents retain unilateral power to impose tariffs—or whether Congress must reassert its constitutional authority over trade. Economic Fallout and Possible Refunds If the Court rules against the administration, Schulz said the results could be both chaotic and beneficial. “ It could be chaos, but it’s beneficial for importers,” she explained. “U.S. companies are losing money every day because they’re the ones responsible for paying the tariffs. They’ve lost a lot, so if this comes out in favor of the plaintiffs, it could mean a lot of refunds for importers.” Those refunds could translate into a short-term boost for businesses and the stock market. As Schulz put it, “ The government has collected a lot of taxes through these tariffs—but it’s the companies in the U.S. that are primarily paying those. So we’re taxing ourselves.” Whether the Supreme Court reins in or reaffirms presidential trade power, the implications will be sweeping. If your company has been affected by recent tariffs—or may be eligible for refunds—contact Schulz Trade Law today  to assess your exposure, prepare refund claims, and develop strategies for navigating future trade actions. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.

Supreme Court Weighs Tariff Power: Michelle Schulz on the Legal Stakes and Business Fallout Trade attorney Michelle Schulz joins KXAN Austin to explain how the Supreme Court’s review of President Trump’s tariffs could reshape presidential power—and why small businesses are caught in the middle. November 5, 2025 KXAN News Austin, Texas Michelle Schulz on KXAN News, Austin The Legal Question: Presidential Power or Overreach? As the U.S. Supreme Court  heard oral arguments over President Trump’s sweeping tariffs on foreign goods, international trade attorney Michelle Schulz  provided legal context from Texas. The justices are reviewing whether the administration overstepped its authority by invoking the International Emergency Economic Powers Act (IEEPA) —a law originally meant for national emergencies. “The plaintiffs include a group of states as well as small businesses,” Schulz explained. “They’re saying that the President’s interpretation of the law gives the executive branch unlimited authority to impose tariffs—and that’s not what the law was intended for.” Schulz noted that the justices appeared skeptical. “No one ever uses this for tariffs, and it doesn’t say it authorizes tariffs,” she said. “It appears there’s a little bit of a stretch.” The Business Impact: 50% Tariffs and Fading Options For many of Schulz’s clients, the debate is not theoretical—it’s financial survival. “This impacts not just large companies but also small ones, and we have both contacting us,” she said. “They’re saying, ‘We can’t mark up the price anymore.’ They’ve reached agreements with their foreign suppliers, but most suppliers aren’t willing to take on that legal burden of paying the tariff.” Some of the tariffs under review are as high as 50% , which has left many businesses squeezed between rising import costs and consumer resistance. “It’s a matter of money and whether they can pass the cost to their clients,” Schulz said. “For some, it’s closing their doors or finding new sourcing entirely.” Beyond the Case: Manufacturing, Policy, and the Future of Tariffs While the administration has argued that tariffs encourage domestic manufacturing, Schulz noted that the reality has often been the opposite. “Importers are not able to manufacture because they can’t import the parts and components at a reasonable price anymore,” she said. “Manufacturing jobs haven’t just come to the U.S.—they’ve also left.” Even if the Supreme Court sides with the plaintiffs, Schulz warned that tariffs won’t disappear. “There are other authorities like Section 232 and Section 301 , which cover copper, aluminum, steel, furniture, and pharmaceuticals,” she said. “Those aren’t impacted by this decision. This case only applies to the country-by-country tariffs based on how our administration feels about each nation.” Whether the Court narrows presidential authority or upholds it, businesses will still face a complex tariff environment. If your company imports goods or components, contact Schulz Trade Law today  to review your tariff exposure, explore refund opportunities, and prepare for future trade shifts. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.

Supreme Court Reviews Trump Tariffs Michelle Schulz on What’s at Stake for Texas Businesses As the Supreme Court weighs the limits of presidential power, trade attorney Michelle Schulz explains how the ruling could shape refunds, sourcing strategies, and the survival of small businesses. November 4, 2025 NBC 5 DFW NBC 5/KXAS-TV, Dallas-Fort Worth Reporter: Vince Sims The Case Before the Supreme Court This week, the U.S. Supreme Court  began hearing arguments on whether President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA)  when imposing wide-ranging tariffs. Speaking with NBC 5, Dallas-based trade attorney Michelle Schulz  said the legal question centers on whether the law was ever meant to be used this way. “I have never seen it used for tariff leverage before,” Schulz explained. “If I’m honest, I do not believe that it follows the letter of the law.” The outcome could redefine how presidents wield economic power—and directly impact businesses across Texas and the nation. The Human and Financial Toll NBC 5’s story featured Sue Schultz , owner of What’s Poppin Texas  in Waxahachie, whose 25-pound boxes of white chocolate jumped $40 per case  under the new tariffs. She told reporters she’s tried to keep prices down for her customers, even though it’s squeezing profits. For many importers, Schulz said, the financial hit has already been devastating. “If the court rules against the President, customs would then owe refunds to our clients—many of whom have lost millions of dollars in revenue.” But if the Court upholds the tariffs, companies will have to double down on compliance and logistics reviews. “You’ll see more importers reviewing specifics of their transactions,” Schulz added. “Many have already moved their sourcing—and that’s not very helpful.” Beyond the Ruling: What Comes Next Even if the tariffs are struck down, Schulz cautioned that the administration still has other legal tools available. “Even if the tariffs are ruled illegal, the Trump administration has several other options to impose tariffs.” For small business owners like Sue, the uncertainty remains daunting. “I’m really hoping they can pull back some of these tariffs,”  she said. “They’re hurting the little guy. But once prices go up, I don’t know if they’ll ever really come back down.” The Supreme Court’s decision could set a major precedent for trade law and business operations in the U.S. If your company has been affected by recent tariffs—or may qualify for future refunds—contact Schulz Trade Law today  to prepare your compliance strategy and explore refund recovery options. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.

The China Trade Deal, Supreme Court Showdown, and Tariff Fallout Michelle Schulz Explains What’s Next on WBAP Trade attorney Michelle Schulz breaks down the “partial” U.S.–China deal, who’s being hit hardest by tariffs, and what the upcoming Supreme Court decision could mean for importers and consumers alike. November 3, 2025 The James Show WBAP News Host: James Parker The Real-World Impact of Tariffs Discussing President Trump’s new “partial” China trade deal, Michelle Schulz , founder of Schulz Trade Law, explained that while the administration touts progress, the effects on American businesses remain severe. “I represent large companies, importers, and also small and medium-sized importers,” she said. “What I’m seeing is that companies of all sizes are impacted down to the individual. Business owners have contacted me saying, ‘My business is no longer sustainable because the tariffs on my goods are too high, and my customers won’t pay that.’” Schulz noted that some sectors—especially apparel, accessories, and small consumer goods—are struggling most. “We’ve got companies importing things like clothes and jewelry and shoes that just can’t make it under the current environment.”  The Supreme Court and the Limits of Presidential Power The interview also previewed the Supreme Court hearing scheduled for November 5 , where justices will decide whether the President has legal authority to impose “reciprocal tariffs” under the International Emergency Economic Powers Act (IEEPA) . Schulz explained: “The question is—Is this an emergency, or is this just for leverage? In my mind, the law is clear. An emergency would have to be more imminent harm rather than overall leverage in a multi-year trade war.” If the Court rules against the administration, Schulz said importers could be eligible for refunds on tariffs deemed unlawful. “Importers would have to go to customs and request refunds on anything that was ruled illegal,”  she said. “It’s great for importers, but I wouldn’t expect it to happen quickly.” Even with a ruling against the President, Schulz noted that tariffs on steel, aluminum, and other materials would remain—since those were enacted under different laws tied to national security. The Long Game: China, the WTO, and the Future of Trade Looking beyond the immediate legal battles, Schulz explained that China’s long-term strategy remains focused and ambitious. “It’s only a partial deal,”  she said. “Keep in mind, China’s looking long term—they’re hoping to integrate military and commercial products and have a world-class military by 2049.” Even if the Supreme Court strikes down some tariffs, Schulz expects the administration to continue pursuing alternative legal paths. “If it’s not an emergency, Trump has already initiated investigations for unfair trade practices and national security under Sections 301 and 232,”  she explained. “They’re kind of a ‘Plan B.’” As for global recourse, Schulz noted that China could take the matter to the World Trade Organization, but is unlikely to prevail. “They could, but I don’t think they would fare well,”  she said. “China has a reputation for not following WTO rules.” From shifting tariffs to court challenges, the trade landscape is changing daily. If your company imports goods from China or other affected countries, contact Schulz Trade Law today  to assess your tariff exposure, explore refund opportunities, and develop compliance strategies for the next phase of global trade policy. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.

When goods cross international borders, customs regulations come into play to ensure that trade is conducted legally and efficiently. Adhering to these rules is crucial for businesses and individuals alike. Failure to comply can lead to delays, fines, or even seizure of goods. Understanding the importance of customs regulations helps in navigating the complex world of international trade smoothly. Understanding Customs Regulations and Their Role Customs regulations are a set of laws and procedures that govern the import and export of goods. They are designed to protect a country’s economy, security, and public health. These rules determine what can be brought into or taken out of a country, how much duty or tax must be paid, and what documentation is required. For example, certain products like pharmaceuticals or food items may require special permits or inspections. Without following these regulations, shipments can be held up at the border, causing costly delays. Moreover, customs authorities may impose penalties for non-compliance, which can damage a company’s reputation and financial standing. Customs officer inspecting cargo at a port Why Following Customs Regulations Matters for Businesses Businesses involved in international trade must prioritize compliance with customs regulations to avoid operational disruptions. Here are some key reasons why: Avoiding Financial Penalties : Customs authorities can impose fines or confiscate goods if regulations are violated. Ensuring Timely Delivery : Proper documentation and adherence to rules prevent delays in customs clearance. Maintaining Good Business Relationships : Reliable compliance builds trust with suppliers, customers, and customs officials. Protecting Brand Reputation : Non-compliance can lead to negative publicity and loss of customer confidence. For instance, a company importing electronics must declare the correct value and classification of goods. Misclassification can result in underpayment of duties and subsequent penalties. By understanding and following customs regulations, businesses can streamline their supply chain and reduce risks. Shipping containers at customs inspection area What are the three key areas of customs compliance? Customs compliance involves several critical areas that businesses must focus on to meet regulatory requirements: Classification and Valuation Properly classifying goods according to the Harmonized System (HS) codes and accurately declaring their value is essential. This affects the duties and taxes applied. Documentation and Record Keeping Maintaining accurate and complete records such as invoices, shipping documents, and permits is necessary for audits and inspections. Duty Payment and Tariff Management Ensuring that all applicable duties and tariffs are paid on time helps avoid penalties and interest charges. By mastering these areas, companies can reduce the risk of customs-related issues and improve their overall trade efficiency. Practical Tips for Ensuring Customs Compliance Achieving compliance with customs regulations requires a proactive approach. Here are some actionable recommendations: Stay Informed : Customs rules can change frequently. Regularly review updates from customs authorities or consult experts. Use Professional Help : Consider hiring a customs broker or a legal advisor who specializes in customs matters. Train Staff : Educate employees involved in shipping and logistics about customs requirements. Implement Technology : Use software solutions to manage documentation and track shipments. Conduct Internal Audits : Periodically review your customs processes to identify and correct potential issues. For example, a company importing textiles might implement a checklist to verify that all necessary certificates and licenses are included with each shipment. This simple step can prevent costly delays and fines. Logistics manager reviewing shipping documents The Broader Impact of Customs Compliance on Global Trade Adhering to customs regulations not only benefits individual businesses but also supports the integrity of global trade systems. Efficient customs processes facilitate faster movement of goods, reduce costs, and promote fair competition. Moreover, customs compliance helps in combating illegal activities such as smuggling and counterfeit goods trafficking. This protects consumers and supports economic development. By committing to customs compliance , companies contribute to a transparent and secure trading environment. This fosters trust among trading partners and encourages international cooperation. Moving Forward with Confidence in Customs Procedures Navigating customs regulations may seem complex, but with the right knowledge and resources, it becomes manageable. Businesses that prioritize compliance can enjoy smoother operations, reduced risks, and stronger market positions. Start by assessing your current customs processes and identifying areas for improvement. Engage with experts when needed and invest in training and technology. By doing so, you ensure that your international trade activities are both lawful and efficient. Remember, customs regulations are not just bureaucratic hurdles - they are essential safeguards that protect your business and the global economy. Embrace them as part of your strategy for success in international markets. Resource Library Learn more about Trade Law. We have a series of articles highlighting the key components of international trade and compliance. tact Us Contact Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.

Export Horror Stories: When Compliance Gets Scary Attorney Josh Rodman from Schulz Trade Law joins Lalo and Andy to share two spine-chilling case studies where export compliance went sideways. In this Halloween Week special, the Simply Trade hosts dig into real-life trade horror stories  that will make any exporter’s blood run cold. October 29, 2025 Simply Trade Podcast Global Training Center Host:  Lalo Solorzano & Andy Shales Export Horror Stories Attorney Josh Rodman from Schulz Trade Law joins Lalo and Andy to share two spine-chilling case studies where export compliance went sideways — despite good intentions. From ballistic helmets misclassified under the wrong ECCN to shipments to Russia caught in the tangled web of ever-changing export controls, this episode proves that in trade, even honest mistakes can summon costly consequences. Josh explains how voluntary self-disclosures (VSDs) can save a company from financial nightmares and why staying current with export regulations is critical to avoid getting haunted by unexpected investigations or penalties. This episode blends legal insight with cautionary tales — perfect for your Halloween listening lineup! Key Topics Real-world export control “horror stories” Misclassification of military equipment under ECCNs Voluntary Self-Disclosures (VSDs) and how they mitigate penalties OFAC subpoenas and overlapping U.S. government investigations Russian sanctions, HTS code–based restrictions, and transshipment red flags How exporters can protect themselves through due diligence and expert review Resources & Mentions Schulz Trade Law Export Administration Regulations (EAR) OFAC – U.S. Treasury Sanctions Programs U.S. Department of Commerce – BIS Global Training Center If your company imports goods or relies on international materials, contact Schulz Trade Law today  for guidance on tariff exposure, compliance, and global sourcing strategies in this shifting trade environment. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates. About Us We are a dedicated team of trade law professionals, committed to helping businesses navigate the complexities of international regulations and tariffs. With deep industry knowledge and a client-first approach, we provide clear, actionable insights to protect your interests and drive success in a dynamic global market. Our Team Contac Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.

In today's interconnected world, global supply chains are the backbone of many industries. However, with complexity comes the challenge of ensuring ethical practices throughout every stage of production. One of the most pressing concerns is the prevention of forced labor, which remains a significant human rights issue worldwide. Companies and governments alike are increasingly focused on creating transparent, responsible supply chains that respect workers' rights and promote fair labor standards. The Importance of Forced Labor Prevention in Supply Chains Forced labor is a severe violation of human rights where individuals are coerced to work under threat, without the freedom to leave. It can occur in various industries, including agriculture, manufacturing, and mining. Preventing forced labor is not only a moral imperative but also essential for maintaining brand reputation and complying with international laws. Businesses must take proactive steps to identify and eliminate forced labor risks in their supply chains. This involves conducting thorough audits, engaging with suppliers, and implementing strict codes of conduct. For example, companies can use third-party verification services to assess labor conditions and ensure compliance with ethical standards. Key actions for forced labor prevention include: Mapping the entire supply chain to identify high-risk areas Training suppliers and employees on labor rights and ethical practices Establishing grievance mechanisms for workers to report abuses safely Collaborating with NGOs and governmental bodies to improve labor conditions Factory conveyor belt with packaged goods Strategies for Effective Forced Labor Prevention To effectively prevent forced labor, companies need a multi-faceted approach that combines technology, policy, and human oversight. Transparency is critical; businesses should demand full disclosure from suppliers about labor practices and working conditions. Technological tools such as blockchain can enhance traceability, allowing companies to track products from raw materials to finished goods. This technology helps verify that no forced labor was involved at any stage. Policy measures include adopting international labor standards like those set by the International Labour Organization (ILO). Companies should also align their internal policies with these standards and ensure they are enforced consistently. Human oversight remains vital. Regular on-site inspections and worker interviews provide insights that technology alone cannot capture. Empowering workers through education and support networks also helps prevent exploitation. Warehouse with labeled boxes and workers What is the Uyghur Forced Labor Prevention Act 2025? The Uyghur Forced Labor Prevention Act 2025 is a significant legislative measure aimed at combating forced labor in global supply chains, particularly focusing on the Xinjiang region of China. This act prohibits the import of goods produced wholly or in part by forced labor from this region, reflecting growing international concern over human rights abuses. The law requires companies to conduct rigorous due diligence to ensure their products do not contain materials sourced through forced labor. Failure to comply can result in severe penalties, including import bans and legal action. This act has heightened awareness and urgency around forced labor prevention, pushing companies to strengthen their supply chain transparency and ethical sourcing practices. Practical Steps for Businesses to Comply with Forced Labor Prevention Laws Compliance with forced labor prevention laws requires a structured and ongoing effort. Businesses should start by conducting comprehensive risk assessments to identify vulnerable points in their supply chains. This includes evaluating suppliers, subcontractors, and raw material sources. Steps to ensure compliance: Develop a clear policy on forced labor prevention that aligns with international standards. Implement supplier codes of conduct that explicitly prohibit forced labor. Conduct regular audits and inspections using independent third parties. Train procurement teams and suppliers on recognizing and addressing forced labor risks. Establish transparent reporting mechanisms for workers and stakeholders. Engage with local communities and NGOs to support ethical labor practices. By embedding these practices into their operations, companies can reduce legal risks and contribute to global efforts to eradicate forced labor. Building a Sustainable and Ethical Supply Chain Culture Creating an ethical supply chain is not a one-time task but a continuous commitment. It requires fostering a culture of responsibility and accountability at every level of the organization. Leadership must prioritize ethical sourcing and allocate resources to support these initiatives. Encouraging transparency and collaboration with suppliers helps build trust and shared values. Companies should also invest in capacity-building programs to help suppliers improve labor conditions and comply with regulations. Moreover, consumers are increasingly demanding ethically produced goods. Transparent communication about supply chain practices can enhance brand loyalty and market competitiveness. By integrating forced labor prevention into corporate social responsibility strategies, businesses can drive positive change and promote human dignity worldwide. Ethical supply chains are essential for a fair and just global economy. By adopting robust forced labor prevention measures, companies not only protect vulnerable workers but also strengthen their own resilience and reputation. Staying informed about laws like the uyghur forced labor prevention act and implementing practical strategies will ensure businesses lead the way toward a more ethical future. Resource Library Learn more about Trade Law. We have a series of articles highlighting the key components of international trade and compliance. Resrouces Resources Contact Us Contact Us Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.