Source: Supply Chain Dive
Date: 29th July 2025

Regular audits of Harmonized Tariff Schedule codes offer companies a powerful yet underused tool to reduce duty rates amid ongoing trade uncertainty.

As tariff fluctuations continue to challenge global trade dynamics, manufacturers are increasingly turning to both advanced technologies and straightforward compliance strategies to manage risks.

One often-overlooked tactic, regularly auditing and reclassifying products under the U.S. Harmonized Tariff Schedule (HTS), is proving to be highly effective. Companies that reassess their tariff codes can legally shift certain goods into more favourable classifications, reducing duties and improving competitiveness without altering their products.

A manufacturer, for example, significantly reduced its U.S. import duty from 55% to 30% after identifying that its goods could be reclassified under a less restrictive HTS code. This shift was based on the product’s broader usage beyond its originally declared category. Such routine audits may seem mundane, but experts note they can deliver substantial financial impact. Keeping a close eye on HTS code changes across different suppliers or sourcing regions also enables companies to respond quickly and strategically to regulatory shifts.

In addition to manual audits, businesses are increasingly integrating AI and machine learning tools to simulate tariff impact scenarios, test pricing responses, and evaluate supply chain resilience.

However, real-time clarity remains difficult due to the unpredictable nature of trade announcements from government sources.

Customs systems often lag behind executive actions or social media posts, creating confusion and operational challenges.

Legal and compliance teams are urging companies to stay vigilant and prepared, as agility in interpreting and reacting to tariff developments is now a competitive advantage.