Determining the correct tariffs to pay in the U.S. used to be relatively straightforward: Each product had a harmonized tariff schedule code (HTS number) that determined the amount. But with President Trump’s recent tariff changes, not only have tariff rates increased, but ensuring compliance with them has become much more complex.
So when a company imports a product, it’s not just importing that product with its one HTS number. Companies must consider the components of that product as well, because components can have their own HTS codes. This means each product involves multiple codes as well as potentially an additional HTS code based on the country of origin.
To dig deeper, visit the original article on the Thomson Reuters blog.