In Russia, Johnson & Johnson's 2-in-1 Shower Gel is considered to be a cosmetic (20 percent tariff). J&J would like it to be considered as a soap substitute (15 percent tariff). This points out which of the following strategies that companies generally prefer in foreign markets with respect to tariffs?

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When tariffs account for a large part of price escalation, companies seek ways to lower the rate. Some products can be reclassified into a different, and lower, customs classification. One complaint against customs agents in Russia is the arbitrary way in which they often classify products. Russian customs insists on classifying Johnson & Johnson's 2-in-1 Shower Gel as a cosmetic with a 20 percent tariff rather than as a soap substitute, which the company considers it, at a 15 percent tariff.

In Russia, Johnson & Johnson's 2-In-1 Shower Gel Is Considered