A more thorough explanation:

Definition: Tariff engineering is a legal strategy used to reduce the amount of tariff paid on imported goods. It involves designing a product in a way that makes it eligible for a more favorable tariff treatment. This can be achieved by changing the product's characteristics, such as its raw materials or structure, or by breaking it up into smaller values to qualify for tariff exemption or lower taxation.

Examples:

• A company that imports shoes from another country may change the materials used to make the shoes to reduce the tariff paid on them.
• A manufacturer of electronic devices may break up a shipment of products into smaller values to qualify for tariff exemption or lower taxation.

These examples illustrate how companies can use tariff engineering to legally reduce the amount of tariff paid on imported goods. By making strategic changes to the product's characteristics, companies can take advantage of more favorable tariff treatment and save money on import costs.