Investigation Into Scheme China Companies Use To Avoid US Tariffs

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IPVM reveals that numerous China importers are avoiding 25% tariffs by including an SD card slot in their IP cameras to claim they are 'digital still image cameras', thereby saving them millions.

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Our goal here is to draw attention to this so that the US government can develop a clear and consistent policy. The 'primary function' of IP cameras is clear and it is not recording still images locally.

IPVM, the world's authority on video surveillance, conducted an investigation on how importers from China are avoiding tariffs by including an SD card slot in their IP cameras and claiming they are 'digital still image cameras', they end up saving millions.

IPVM Founder, John Honovich, said "Our goal here is to draw attention to this so that the US government can develop a clear and consistent policy. The 'primary function' of IP cameras is clear and it is not recording still images locally. But, if the US government wants to define it that way, at least they should do it consistently. Right now, the manufacturer and importers who are clever, devious or resourceful enough to do this are taking advantage of others who are following a more sensible interpretation of what IP cameras are and how they should be classified."

In this report, IPVM covers shipping records that show over 60 examples of IP Cameras being labeled as "digital still image cameras" whereas before the tariffs they were not.

"If Customs and Border Patrol does decide that IP cameras are being misclassified as "Digital Still Video Image Cameras", it has the power to reverse course and even charge any missed tariffs, plus interest, for up to 5 years." said trade lawyer Doug Jacobson.

US importers have been able to avoid millions in tariffs by exploiting a fault in the system, and IPVM strongly advocates for Customs and Border Patrol to re-evaluate to a clear and consistent policy.

About IPVM: IPVM is the world's leading authority on video surveillance, delivering unmatched reporting, research, and test results. Founded in 2008, IPVM has the most in-depth expert reports on security technology and is the only independent industry testing service providing critical analysis and education on leading products.

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Jared Dowling
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