Nothing stays static for long in international trade. Not your products, not the market, and certainly not the way Customs views your shipments. So what happens when you tweak a product design, change a key component, or bundle in a new feature? Do you still get to use the same HTS code?
Short answer: maybe not.
Long answer: you need to reassess before CBP does it for you.
Doesn’t One Product = One HTS Code?
It’s a common assumption. If a product has already been classified, isn’t that the end of the story? Unfortunately, no. The Harmonized Tariff Schedule is all about what the product is at the time of import, and that means even small modifications can trigger a new classification.
- Changed the material composition?
- Added new features?
- Removed a key function?
- Repackaged with other components?
All of these can shift a product into a different subheading, heading, or even chapter. If your documentation doesn’t reflect that, you could be looking at penalties, back duties, or even a seizure.
When Is a Change Big Enough to Matter?
CBP doesn’t publish a checklist, but generally, a modification is material if it:
- Alters the essential character or principal function of the item
- Affects how the product is used, marketed, or understood
- Changes the product’s classification under the General Rules of Interpretation (GRIs)
Here’s an example:
A company previously imported a very sensitive weighing machine under 8423.20.90/2.9%. They later improved the sensitivity of the machine, which moved the machine to 9016.00.20/3.9%. Classification shifted. So did the duty rate.
The “Same Product” Myth
One of the most common pitfalls we see? Importers assume an updated product is “basically the same” as the old one.
From a marketing standpoint, maybe. But from a Customs standpoint, even slight changes in:
- Form factor
- Connectivity
- Power supply
- Programming/interface
- Material composition
…can justify a different classification. And CBP isn’t shy about flagging discrepancies, especially when new specs mean a new duty rate.
What About Product Variants?
Let’s say you offer three versions of a base model:
- A stripped-down entry version
- A mid-tier version with upgraded internals
- A premium model with additional features and accessories
Can you use the same HTS code for all three? Again, it depends.
If the essential character remains unchanged across variants, you may have a case. But if the function, composition, or user experience meaningfully shifts, you’ll need to evaluate each on its own.
In other words: modular product lines deserve modular classification strategies.
A Word on Binding Rulings
If you received a binding ruling on a product, that ruling applies only to the version described in the request.
Update the specs, and that ruling may no longer protect you.
The burden is on you to update your classification documentation and, if needed, request a new ruling or amend your internal logic.
Stay Ahead of the Change
In the eyes of CBP, your classification decisions must match the reality of your product, not last year’s version, not your marketing team’s talking points, and definitely not wishful thinking.
At O’Meara & Associates, we help importers navigate the nuances of HTS classification for evolving product lines, from the first prototype to the tenth revision. If your product has changed, your strategy needs to change with it.
Contact us today and let’s make sure your tariff position is as current as your catalog.
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