HTS Review Service

An HTS Review is crucial to fully understand your product costs. When importing products, the Harmonized Tariff Schedule (HTS) classification of your goods determines how much you’ll pay in import duties, which can range from 0% to over 100%. These duties are a significant factor in your overall cost structure, making accurate classification essential not just for compliance, but also for managing costs and protecting your margins.

Why Accurate HTS Classification Matters More Than Ever

Import duties are set by tariffs, and with duty rates fluctuating and trade policies constantly evolving, it’s critical to know exactly how much you’re paying. Using the correct HTS classification ensures compliance, avoids costly fines, and helps you fully understand the cost implications of importing your goods (see: The Importance of Using Correct HTSUS Codes). Additionally, if duty rates increase, understanding your product classifications positions you to adjust your supply chain or pricing strategy proactively.

Pro Tip: Do not rely solely on your supplier to provide the HTS classification. As the importer, you are responsible for ensuring the correct classification is used.

Accurately Classify Your Products

The first step to minimizing costs and staying compliant is to correctly classify your products according to the HTS codes. These globally recognized numeric codes categorize products for customs and tariff purposes, directly impacting the duties you pay.

• The Role of HS Codes: HTS codes are derived from the international Harmonized System (HS), which identifies products and determines applicable duty rates. Misclassification can result in overpaying duties or incurring penalties for non-compliance.

• Review for Accuracy: Regularly reviewing your HTS classifications helps ensure they are accurate and up to date. Products evolve, and trade policies change, so what was once a correct classification may no longer apply.

• Verify and Consult: Use government resources or work with a customs broker to verify your classifications. Our team can review your HTS codes to ensure accuracy and identify opportunities for cost optimization.

Every Country Has Unique Codes: While HS codes are standardized at the six-digit level, codes beyond this vary by country. Ensure you’re using the correct code for the specific country you’re importing into to avoid delays and unexpected fees.

Understand Duty Rates and Fees for Your Product

Import duties vary widely based on the HTS classification, the country of origin, and other factors. Reviewing your classifications not only ensures compliance but can also reveal ways to save on costs.

• General Duties: Base duty rates apply to all products based on their classification.

• Country-Specific Duties: Some duties, like the China Section 301 tariffs (7.5% or 25%), apply based on the country of origin.

• Special Duties and Fees: Products may also be subject to additional fees such as anti-dumping duties, countervailing duties, or commodity-specific fees (e.g., cotton fees).

We Can Help You Optimize: Reviewing your classifications with an expert can uncover opportunities to lower your duty rates by identifying alternate, accurate classifications that fall under lower-duty categories.

HTS Classifications Can Make or Break Your Business

High import duties can erode your margins or make your product uncompetitive compared to locally sourced or alternate goods. It’s critical to assess these costs early in your supply chain planning.

• Evaluate High-Duty Products: For products with prohibitively high duties, consider negotiating with suppliers to share the cost burden or re-evaluating your sourcing strategy.

• Explore Cost-Saving Alternatives: Many business owners in the Supply Chain Shark community have successfully reduced import costs by exploring products with lower-duty classifications or finding suppliers in countries with more favorable trade agreements.

Your HTS classification is not just a compliance measure—it’s a critical component of your cost structure. Accurate classification and regular reviews can help you stay compliant, avoid penalties, and optimize your duty costs. In today’s environment, where tariffs and trade policies shift frequently, knowing how much you’re paying in import duties—and why—has never been more important.

Let us help you review your HTS codes for accuracy and uncover cost-saving opportunities in your import operations. Don’t leave money on the table—take control of your import duties today!