What is Contingency Fee?

A contingency fee is a payment arrangement where the service provider's compensation is a percentage of the funds recovered, and no fee is owed if the recovery is unsuccessful. In the tariff refund context, a contingency fee structure means the importer pays nothing upfront — the fee is deducted only from actual refund proceeds. This aligns the service provider's incentive with the client's outcome. Federal regulations (16 CFR section 310.3(a)(1)) require clear disclosure of the contingency fee percentage before the client signs any agreement.

Tariffi operates on a tiered contingency fee basis: the fee percentage varies by claim size, and no advance fees are ever charged (per 16 CFR section 310.4(a)(2)). This means importers have zero financial risk — if no refund is recovered, no fee is owed. The contingency structure is disclosed in the Contingency Fee Agreement (CFA) signed as part of the onboarding package.