Five Signs Your Customs Broker Is Getting Your HTS Codes Wrong

Customs brokers play an essential role in international trade. They process entries, deal with forms most people never want to read, and help keep your goods moving. But as any seasoned importer will tell you: not all brokers are created equal – and not all of them get your HTS classification right.

While it’s tempting to assume your broker has it covered, the reality is that the legal responsibility for correct classification lies with you, the importer of record. And in a tariff environment where a single digit in an HTS code can cost or save tens of thousands of dollars, trusting without verifying is a risky (and expensive) habit.

Here are five subtle, but serious, signs that your broker might be getting it wrong.

1. You’ve Never Had a Conversation About Product Function or Composition

If your broker classified your product based solely on the commercial invoice without asking what it does, how it’s made, or what it’s made from, you may want to dig deeper. HTS classification isn’t determined by the name on your invoice. It’s determined by a set of legally binding interpretive rules, supporting notes, and case law.

For example, a “wireless sensor” might be classified as an electrical instrument, a data transmission device, or even as a machine part depending entirely on its use and design. If your broker didn’t ask those questions, odds are they didn’t get the classification right.

2. You’re Using the Same HTS Code Across Multiple Product Lines

Convenience is not a classification strategy. If every product you import regardless of material, use, or configuration is being entered under the same HTS heading, someone is cutting corners.

We’ve seen companies import everything from plastic cases to composite components under the same subheading simply because, at some point, a broker made a best guess and it stuck. This may not draw attention at first, but when it does, it tends to come with a bill attached.

3. Your Duty Rates Seem… Suspiciously High (or Low)

Most importers don’t love tariffs, but they do love consistency. If you notice your effective duty rates have changed, or if they seem unusually high for your industry, it could be a sign that your broker has classified your goods incorrectly or failed to take advantage of trade preference programs or duty exemptions.

Conversely, if your duty rates seem almost too good to be true, that’s worth checking too. CBP is not fond of overly optimistic interpretations, and underpayment due to misclassification can lead to liquidated damages and retroactive duties.

4. You’ve Never Seen a Binding Ruling or CROSS Reference

A knowledgeable broker or trade advisor will support their classification decisions with either a binding ruling from CBP or a published ruling in the CROSS database that closely matches your product. If you ask how a code was selected and get a shrug, silence, or a line from the invoice repeated back to you, you’re not getting a classification, you’re getting a placeholder.

The HTSUS is complex, and classification isn’t always black and white. But if your broker hasn’t done the legal homework or can’t explain their reasoning, it’s your business that’s on the hook when CBP shows up with questions.

5. You’re the One Who Picked the Code

This one is trickier than it sounds. Sometimes, importers provide HTS codes to their broker with the best of intentions only to discover later that the code was based on a supplier’s guess, a Google search, or (worse) using AI. 

A good broker should review any importer-supplied classification against the actual product specs and flag inconsistencies. If your broker simply keys in whatever code you provide without verifying it against the HTSUS, the relationship may be efficient, but it’s not compliant.

What’s at Stake?

Incorrect classification can lead to more than just overpayment. It can expose your business to:

• CBP penalties for negligence or fraud
• Seizure or delayed release of goods
• Loss of duty-free eligibility under FTAs
• Increased scrutiny or audits

And if you think “we trusted our broker” is a valid defense, CBP disagrees. The importer is expected to exercise reasonable care, and that includes knowing whether your classifications hold up under review.

The Case for a Second Opinion

At O’Meara & Associates, we’ve reviewed thousands of classifications for importers across industries from manufacturers and automakers to pharmaceutical firms and aerospace suppliers. We know the HTSUS, we know CBP’s enforcement trends, and we know how costly it can be to leave classification decisions on autopilot.

If you’ve never questioned your classifications – or you’re starting to – we can help you get ahead of the problem before it becomes a liability. The cost of a misstep in HTS classification isn’t just a few percentage points on duty. It’s audit risk, financial exposure, and regulatory attention you didn’t ask for.

A second opinion isn’t just smart, it’s responsible.

Let O’Meara & Associates review your classifications before CBP does. Contact us today to schedule a consultation.