{"id":8966,"date":"2022-01-17T03:42:10","date_gmt":"2022-01-17T03:42:10","guid":{"rendered":"https:\/\/staginggembah.wpengine.com\/blog\/harmonized-tariff-schedule\/"},"modified":"2024-11-04T12:06:47","modified_gmt":"2024-11-04T18:06:47","slug":"harmonized-tariff-schedule","status":"publish","type":"post","link":"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/","title":{"rendered":"Your Easy Guide to the Harmonized Tariff Schedule [2022]"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">No one likes to talk about taxes, and tariffs on imports are no exception. It\u2019s a topic that many entrepreneurs avoid when planning out the design and manufacturing of their products \u2014 and that\u2019s a mistake. <\/span><a href=\"https:\/\/www.inc.com\/encyclopedia\/tariffs.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Tariffs<\/span><\/a><span style=\"font-weight: 400;\"> can be a considerable portion of your total cost of goods. Not only do you spend money to pay the fees, but if you get something wrong, your products could end up stuck in customs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are not insurmountable problems \u2014 every exported product deals with the system. For your product\u2019s success, you need to understand what tariff rates are, how products are classified, how they\u2019re applied, and how they\u2019re changing. And that means you need to understand both the Harmonized Tariff Schedule and the Harmonized System.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fortunately, we can help simplify it all so you feel empowered to <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/blog\/product-design-steps\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">move forward with your incredible idea<\/span><\/a><span style=\"font-weight: 400;\">. This article will start with an explanation of what the Harmonized Tariff Schedule and Harmonized System are, cover how they impact new products, and finish with a look at new regulations coming in 2022. We\u2019ll also offer some recommendations on navigating this important aspect of bringing a product to market.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#What_Are_the_Harmonized_Tariff_System_and_a_Harmonized_Tariff_Schedule\" title=\"What Are the Harmonized Tariff System and a Harmonized Tariff Schedule?\">What Are the Harmonized Tariff System and a Harmonized Tariff Schedule?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#Why_Should_You_Care_About_the_Harmonized_Tariff_Schedule\" title=\"Why Should You Care About the Harmonized Tariff Schedule?\">Why Should You Care About the Harmonized Tariff Schedule?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#1_How_Much_Will_It_Cost_to_Import_Your_Product\" title=\"1. How Much Will It Cost to Import Your Product?\">1. How Much Will It Cost to Import Your Product?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#2_What_Are_the_Tariffs_on_the_Components_and_Raw_Materials_You_Need_to_Import_for_Manufacturing\" title=\"2. What Are the Tariffs on the Components and Raw Materials You Need to Import for Manufacturing?\">2. What Are the Tariffs on the Components and Raw Materials You Need to Import for Manufacturing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#3_Can_You_Change_Your_Product_to_Reduce_the_Tariff\" title=\"3. Can You Change Your Product to Reduce the Tariff?\">3. Can You Change Your Product to Reduce the Tariff?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#4_Should_You_Change_Where_You_Make_Your_Product_to_Reduce_Tariffs\" title=\"4. Should You Change Where You Make Your Product to Reduce Tariffs?\">4. Should You Change Where You Make Your Product to Reduce Tariffs?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#Changes_to_the_Harmonized_System_in_2022\" title=\"Changes to the Harmonized System in 2022\">Changes to the Harmonized System in 2022<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/#Factor_the_Harmonized_Tariff_Schedule_Into_Your_Product_Development\" title=\"Factor the Harmonized Tariff Schedule Into Your Product Development\">Factor the Harmonized Tariff Schedule Into Your Product Development<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_the_Harmonized_Tariff_System_and_a_Harmonized_Tariff_Schedule\"><\/span><b>What Are the Harmonized Tariff System and a Harmonized Tariff Schedule?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter wp-image-4502 size-full\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2022\/07\/Tariff-highlighted-with-a-pink-highlighter.jpeg\" alt=\"The word Tariff in a dictionary, highlighted in pink\" width=\"700\" height=\"467\" \/>When you import a product into a country, it\u2019s usually subject to some sort of import tax called a customs <\/span><a href=\"https:\/\/www.thomasnet.com\/insights\/duty-vs-tariff-what-s-the-difference\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">duty or a tariff<\/span><\/a><span style=\"font-weight: 400;\">. A duty is a tax that the person paying for the product pays and a tariff is paid for by the person importing the product. And in most cases, the amount of the tax is based on what type of product you\u2019re importing. Wheat is taxed at a different rate than lumber is.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This has been going on for millennia. Ancient texts are full of details about tariffs and complaints about how high they are. Everything worked fine until the industrial revolution happened, and world trade got complicated with each company classifying products their own way.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The industrialized countries realized they needed to all get on the same page, and after much back and forth, a system called the Geneva Nomenclature was released in 1931 but not widely used. In 1974, wealthy countries adopted the Customs Co-operation Council Nomenclature. This was then replaced in 1988 by the Harmonized System Convention, officially called the Harmonized Commodity Description and Coding System. Mercifully, most people call it the Harmonized System, or the HS. The full history is outlined in the <\/span><a href=\"http:\/\/www.wcoomd.org\/-\/media\/wco\/public\/global\/pdf\/topics\/nomenclature\/activities-and-programmes\/30-years-hs\/hs-compendium.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">2018 HS document<\/span><\/a><span style=\"font-weight: 400;\"> if you\u2019re interested.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The HS finally created a consistent way to classify almost every product. Countries no longer had to make their own descriptions. They just had to assign a tax to each item covered. It provided a way to collect data on what goods are being exported and imported around the world. Around 157 countries work on the HS, and more than 200 customs administrations use it around the world. They also set it up to be reviewed every five years because products are always changing and new technologies come to market. The last standard, HS2017, was replaced by HS2022 on January 1, 2022.\u00a0<\/span><\/p>\n<p><a href=\"http:\/\/www.wcoomd.org\/en\/media\/newsroom\/2018\/january\/celebrating-the-30th-anniversary-of-the-harmonized-system.aspx\"><span style=\"font-weight: 400;\">Referred to<\/span><\/a><span style=\"font-weight: 400;\"> as \u201ca universal language for international trade,\u201d the Harmonized System is managed by the<\/span><a href=\"http:\/\/www.wcoomd.org\/en.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> World Customs Organization<\/span><\/a><span style=\"font-weight: 400;\"> (WCO). They work as an independent entity to create a hierarchical structure that consists of numerical codes and descriptions of products. The classification system uses six digits to group products into chapters, then headings, and then sub-headings to get more specific.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As an example, a chocolate bar that has no filling would use the HS code of:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">1806.32<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chapter 18 \u2014 Cocoa and Cocoa Preparations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Heading 06 \u2014 Chocolate and other food preparations containing cocoa<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sub-heading 32 \u2014 Not filled<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Don\u2019t worry, there are online tools and experts to help identify the correct number for your product. We\u2019ll cover that later. For now, just know you need that tariff classification number to figure out how much you will need to pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And to find that tariff, you need to locate the tariff table for the country you want to import into. For the U.S., that\u2019s called the <\/span><a href=\"https:\/\/hts.usitc.gov\/current\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Harmonized Tariff Schedule<\/span><\/a><span style=\"font-weight: 400;\"> of the United States. People abbreviate it as both HTS and HTSUS. Once the HS was put in place, the U.S. aligned its tariff system to use the same numbering.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, to get more specific, the HTS codes include additional local sub-headings. In our chocolate example, the amount of fat in a chocolate bar can change the import tax, so different levels have different sub-headings.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Harmonized Tariff Schedule is maintained by the United States International Trade Commission (USITC) and administered by the U.S. Customs and Border Protection (CBP) agency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The country of origin also has an impact on the duty charged. The HTS includes information on how the tariff may be higher, lower, or completely eliminated based on what country the product is coming from. Make sure you check for country of origin notes in the HTS or in referenced appendices, like the <\/span><a href=\"https:\/\/hts.usitc.gov\/view\/China%20Tariffs?release=2021HTSABasicRev6\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">China Tariffs amendment<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, HTS number 1806.32.06 refers to unfilled chocolate bars with less than 21% milk solids, and the tariff is 4.3% plus $0.372 per kg instead of the flat 5% with more milk solids.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s easy to confuse the HS and the HTS, but to sum up: The Harmonized System defines how your product is classified around the globe. The Harmonized Tariff Schedule tells you if your product has a tariff in the United States, if there are additional sub-headings, and what the tax is.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Should_You_Care_About_the_Harmonized_Tariff_Schedule\"><\/span><b>Why Should You Care About the Harmonized Tariff Schedule?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-4503\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2022\/07\/team-having-a-meeting-2.jpeg\" alt=\"Harmonized Tariff Schedule: team having a meeting\" width=\"700\" height=\"394\" \/>There are three primary reasons why an entrepreneur looking to bring a product to market should pay attention to the Harmonized Tariff Schedule.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When developing a product, we spend a lot of time looking at ways to keep the <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/blog\/how-to-find-a-manufacturer-to-make-your-product\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">costs of materials and manufacturing<\/span><\/a><span style=\"font-weight: 400;\"> down, to maximize our profit while balancing price competitiveness. Tariffs can be zero with free trade agreements, or 25% or higher if countries are engaging in a trade dispute. This variation has a direct impact on your costs and therefore your price and your profit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why you and your product development team, as early in the product development process as possible, should ask and answer these four questions:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_How_Much_Will_It_Cost_to_Import_Your_Product\"><\/span><b>1. How Much Will It Cost to Import Your Product?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As mentioned above, figure out your HS number and then look it up on the Harmonized Tariff Schedule and get the tariff you will be charged. Then factor that price into your cost model. Keep this up to date as your design and perhaps where you make your product changes.\u00a0<\/span><\/p>\n<div class=\"banner\">\r\n    <div class=\"title\">\r\n        <span class=\"light\">Launch Your Product Faster<br> with<\/span>\r\n        <span class=\"bold\">Gembah<\/span>\r\n    <\/div>\r\n    <div class=\"subtitle\">\r\n        <span>1000\u2019s of vetted factories, designers, and experts are a few clicks away!<\/span>\r\n    <\/div>\r\n    <a href=\"\/expert-help\/\" target=\"_blank\" class=\"cta-button\">Get Started Now<\/a>\r\n<\/div>\r\n<style>\r\n    .banner {\r\n        background-color: #0692FB;\r\n        background-image: radial-gradient(rgba(255, 255, 255, 0.07) 1.6px, transparent 1px);\r\n        background-size: 7px 7px;\r\n        color: #ffffff;\r\n        padding: 30px;\r\n        text-align: center;\r\n        font-family: Arial, sans-serif;\r\n        border-radius: 12px;\r\n        max-width: 540px;\r\n        margin: 20px auto 40px;\r\n        box-shadow: 0px 8px 16px rgba(0, 0, 0, 0.2);\r\n        display: inline-block;\r\n    }\r\n\r\n    .banner .title {\r\n        font-family: 'Poppins', sans-serif;\r\n        font-size: 28px;\r\n        margin: 5px 20px 0;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        line-height: 1.2;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    .banner .title .light {\r\n        font-weight: 400;\r\n    }\r\n\r\n    .banner .title .bold {\r\n        font-weight: 900;\r\n    }\r\n\r\n    .banner .subtitle {\r\n        font-family: 'Jost', sans-serif;\r\n        font-size: 18px;\r\n        font-weight: 400;\r\n        line-height: 1.25;\r\n        margin: 14px 60px 20px;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        word-spacing: 0.8px;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    \/* More specific selector with !important overrides *\/\r\n    .banner a.cta-button {\r\n        background-color: #fdbc52 !important;\r\n        color: #1e1e1e !important;\r\n        font-family: 'Jost', sans-serif !important;\r\n        font-size: 20px !important;\r\n        font-weight: 900 !important;\r\n        padding: 9px 19px !important;\r\n        border-radius: 6px !important;\r\n        margin: 15px 0 10px !important;\r\n        cursor: pointer !important;\r\n        text-decoration: none !important;\r\n        display: inline-block !important;\r\n        transition: background-color 0.3s ease !important;\r\n        box-shadow: 0px 6px 12px rgba(0, 0, 0, 0.3) !important;\r\n    }\r\n\r\n    .banner a.cta-button:hover {\r\n        background-color: #e6a946 !important;\r\n    }\r\n\r\n    @media (max-width: 600px) {\r\n        .banner {\r\n            max-width: 90%;\r\n            margin: 20px auto;\r\n        }\r\n\r\n        .banner .title {\r\n            font-size: 20px;\r\n            margin: 0px 0;\r\n        }\r\n\r\n        .banner .subtitle {\r\n            font-size: 16px;\r\n            font-weight: 500;\r\n            margin: 20px 20px 0;\r\n            margin-bottom: 30px;\r\n        }\r\n\r\n        .banner a.cta-button {\r\n            font-size: 16px !important;\r\n            padding: 10px !important;\r\n            width: 100% !important;\r\n        }\r\n    }\r\n<\/style>\r\n\n<h3><span class=\"ez-toc-section\" id=\"2_What_Are_the_Tariffs_on_the_Components_and_Raw_Materials_You_Need_to_Import_for_Manufacturing\"><\/span><b>2. What Are the Tariffs on the Components and Raw Materials You Need to Import for Manufacturing?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">We\u2019ve mostly focused on the import duties applied to your finished product. But if you\u2019re <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/blog\/how-sourcing-agents-take-advantage-of-entrepreneurs\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">importing components or raw materials<\/span><\/a><span style=\"font-weight: 400;\"> in order to make your product, there may be import taxes you have to pay. And those costs must be factored into your cost model and should impact your decisions on what your supply chain looks like. You\u2019ll need to look in the Harmonized Tariff Schedule for the country you\u2019re manufacturing in.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Can_You_Change_Your_Product_to_Reduce_the_Tariff\"><\/span><b>3. Can You Change Your Product to Reduce the Tariff?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Small changes in a product can sometimes change the Harmonized System code for a given product. That\u2019s because countries use tariffs to drive behavior. As we will see, the 2022 HS and HTS use classifications and tariff levels to encourage sustainability. This may make using a green material or adding a sustainability feature more attractive.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Should_You_Change_Where_You_Make_Your_Product_to_Reduce_Tariffs\"><\/span><b>4. Should You Change Where You Make Your Product to Reduce Tariffs?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is a big question. People often choose a given country for manufacturing because of <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/blog\/manufacturing-in-mexico\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">lower labor or tooling costs<\/span><\/a><span style=\"font-weight: 400;\">. But a high tariff can remove that advantage in the blink of an eye. When evaluating manufacturing partners, make sure you look up your product\u2019s code in the HTS to get the specific tariff for imported products from that country.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All of those questions deal with cost. In addition, if you do not use the HS and HTS correctly, your products may be delayed by customs. Keeping accurate documentation for your finished goods is critical to a stress-free importation.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Changes_to_the_Harmonized_System_in_2022\"><\/span><b>Changes to the Harmonized System in 2022<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-4500\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2022\/07\/blue-arrow-with-TARIFF-CHANGE.jpeg\" alt=\"Harmonized Tariff Schedule: blue arrow with the words TARIFF CHANGE on it\" width=\"700\" height=\"366\" \/>Every five years the Word Customs Organization reviews the Harmonized System to adapt for new technologies, add more specific breakouts, and incorporate member nation requests. HS2022 added new headings, sub-headings, and changes in descriptions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.thomsonreuters.com\/en-us\/posts\/tax-and-accounting\/2022-tariff-review\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">most important new classifications or improved definitions<\/span><\/a><span style=\"font-weight: 400;\"> are for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electronic waste\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hydrocarbon gasses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Smartphones<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unmanned aerial vehicles<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tobacco and nicotine products that don\u2019t involve burning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Heavy-duty vehicles with electric motors, including new sub-headings for fully electric and hybrid vehicles<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additive manufacturing equipment (3D printers)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Medical rapid diagnostic kits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Kits for medical clinical trials<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cell cultures and cell therapy products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Products that might also be used by terrorist groups<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Materials that are controlled under various other international agreements<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">That covers the classification. As of January 1, 2022, this new Harmonized System is in effect, and the United States International Trade Commission has modified the HTS to align with the new HS. Do note that legislation assigns specific tariffs and can change at any time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Anyone importing an existing product or planning to import a new product needs to review the new HS and HTS for their supply chain and their product. All shipping documentation needs to be updated if the codes have changed for your product. In addition, countries may change tariffs because of the new classifications.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factor_the_Harmonized_Tariff_Schedule_Into_Your_Product_Development\"><\/span><b>Factor the Harmonized Tariff Schedule Into Your Product Development<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-4501\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2022\/07\/budget-planning-concept.jpeg\" alt=\"Hologram of business, planning and budget charts\" width=\"700\" height=\"266\" \/>Even before the changes in 2022, knowing your nomenclature and classification was important. It impacts the final cost of your product and getting it wrong could land your product in a holding area for weeks or months while you correct your paperwork. And now, with new sections and sub-headings in both the HS and HTS, you need to make sure the classifications you assign your product are accurate and that you know the true import costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Factor tariff costs into every step of your product development process that involves estimating costs, even in the early ideation states when you are evaluating different approaches. And it should certainly be a key factor in choosing your manufacturing partner and in which country you choose to make your product.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some useful resources are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The U.S. International Trade Commission has lots of <\/span><a href=\"https:\/\/usitc.gov\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">useful tariff information<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"http:\/\/www.wcoomd.org\/en\/topics\/nomenclature\/instrument-and-tools\/tools-to-assist-with-the-classification-in-the-hs\/hs-online.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Harmonized System Database<\/span><\/a><span style=\"font-weight: 400;\"> is an online tool for finding your product\u2019s classification and specific values in the tariff database<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/hts.usitc.gov\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HTS Search<\/span><\/a><span style=\"font-weight: 400;\"> is an interactive tool for searching American specifications\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you spend some time with these tools, you may have questions. And that&#8217;s where an expert on product import and export comes in handy. Working with a comprehensive solution provider like <\/span><a href=\"https:\/\/www.gembah.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Gembah<\/span><\/a><span style=\"font-weight: 400;\"> not only gives you the expertise you need, but our knowledge about trade and tariffs can be a game changer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That knowledge is integrated into our <\/span><span style=\"font-weight: 400;\">product development process<\/span><span style=\"font-weight: 400;\">, resulting in an accurate cost analysis that includes tariffs and duties where you&#8217;re manufacturing for the parts and materials that go into your product as well as what you&#8217;ll pay to import your finished product to the United States.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s be honest, the Harmonized System and the Harmonized Tariff Schedule are not the most exciting or glamorous part of getting your product to market, and the various options and potential pitfalls can be daunting. Reach out to Gembah today and let\u2019s talk about how to <\/span><a data-wpil=\"url\" href=\"https:\/\/gembah.com\/contact\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">get you started on your journey<\/span><\/a><span style=\"font-weight: 400;\">. We\u2019re the type of people who actually get excited talking about trade tariffs.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>No one likes to talk about taxes, and tariffs on imports are no exception. It\u2019s a topic that many entrepreneurs avoid when planning out the design and manufacturing of their products \u2014 and that\u2019s a mistake. Tariffs can be a considerable portion of your total cost of goods. Not only do you spend money to &#8230; <a title=\"Your Easy Guide to the Harmonized Tariff Schedule [2022]\" class=\"read-more\" href=\"https:\/\/gembah.com\/blog\/harmonized-tariff-schedule\/\" aria-label=\"More on Your Easy Guide to the Harmonized Tariff Schedule [2022]\">Read more<\/a><\/p>\n","protected":false},"author":14,"featured_media":7518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[],"topics":[20],"class_list":["post-8966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","topics-supply-chain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.1 (Yoast SEO v23.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Your Easy Guide to the Harmonized Tariff Schedule [2022]<\/title>\n<meta name=\"description\" content=\"We simplify the Harmonized Tariff Schedule so you can know what costs will be involved with your product. 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