How to Avoid Tariff Misclassification in Your Supply Chain
Blog
Whether you’re an OEM or systems integrator sourcing computers and embedded components, tariffs can create unexpected costs that erode margins. The challenge is that many issues don’t come from official regulations but from misclassification and courier practices.
How You May Be Losing Money Right Now
Misclassification by couriers
FedEx, UPS, and DHL brokers have incorrectly applied a 25% auto tariff to computers in many cases, even though computers are largely exempt.
Incomplete or unclear commercial invoices
When overseas vendors lump multiple countries of origin together or skip tariff codes on a commercial invoice, shipments can be flagged for the highest possible rate. A small mistake in labeling can trigger a 25 to 45% tariff you didn’t budget for.
Quoting before classification is locked
If your shipment is misclassified after you’ve priced a project, the extra tariff hits your margin directly. A 25% tariff can drop a healthy margin to almost nothing overnight.
Paying reciprocal tariffs on exempt computer products
Many computer products are exempt from reciprocal tariffs; however, if the correct HTS code and exemption codes are not used, then you will be charged these tariffs anyways.
How New Era Helps You Stay in Control
New Era Electronics helps you stay in control by taking the complexity out of tariff management and customs compliance:
- Instead of relying on courier customs brokers, we work with trusted third-party customs brokers who verify charges before submission.
- We make sure every invoice includes the three essential codes: your product harmonized tariff schedule (HTS) code, 9903.01.32, and 9903.94.06 to prevent misclassification and unnecessary tariffs.
- Our team advises on country-of-origin strategies, helping you reduce exposure by shifting builds when it makes sense.
- We continuously monitor policy changes so you’re always a step ahead.
- Most importantly, we import products into the USA, so you don’t have to deal with the headache.
By handling these details, New Era Electronics allows you to focus on product development and delivery. Unexpected tariffs can drain margins, delay projects, and put you at a competitive disadvantage. Partnering with us means you gain a team that knows the rules, anticipates changes, and ensures your shipments clear correctly the first time.
Contact us to discuss your tariff questions and challenges.
