Mastering tariff series Part 4: Ensure classification compliance with ONESOURCE Global Classification
This is the fourth in a series of blog posts examining product solutions that can help specialists and strategists master tariff compliance. In the previous posts, we explored how ONESOURCE Free Trade Agreements, ONESOURCE Foreign Trade Zones, and ONESOURCE Global Duty Optimisation can minimise the impact of tariffs.
Highlights:
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Determining the correct tariffs to pay in the U.S. used to be relatively straightforward: Each product had a harmonised tariff schedule code (HTS number) that determined the amount. But with President Trump’s recent tariff changes, not only have tariff rates increased, but ensuring compliance with them has become much more complex.
So when a company imports a product, it’s not just importing that product with its one HTS number. Companies must consider the components of that product as well, because components can have their own HTS codes. This means each product involves multiple codes as well as potentially an additional HTS code based on the country of origin.
“It’s not really a product that comes in anymore,” says Liz Connell, Vice President of Product Management ONESOURCE Global Trade with Thomson Reuters. “It’s like this complex matrix of things, components and country, and the tariffs are compounding on top of each other. So, it’s becoming infinitely more complex even to know what the thing is that you’re importing.”
Add to that a more aggressive stance by the new administration to enforce the classifications.
They’re specifically highlighting the importance of accurate classification enforcement,” Connell says. “There’s been a shift in approach, with a greater emphasis on identifying and addressing misclassifications. While there have always been risks associated with non-compliance, the consequences of errors are now more significant. If incorrect classifications are discovered, authorities have the authority to take action, and companies may face penalties for non-compliance”
Connell continued, “Classification has gone from something that’s important and you should do it right, to something where you better be getting it right because they’re really checking for it now.”
In this environment, the too-common method of using spreadsheets or a customised ERP are no longer feasible approaches to managing classification. Companies instead need automation. That’s where ONESOURCE Global Classification can help.
Automation provides simplified visibility into your classification process
With its accessible database, ONESOURCE Global Classification provides the visibility and constantly updated rules and regulations that companies need to ensure tariff compliance—including managing all the components of products in addition to the products themselves.
The Smart HS tool lets users leverage artificial intelligence (AI) and machine learning to save time and improve accuracy with automated six-digit classifications. It draws on Thomson Reuters’ content and a company’s historical classification behavior to define product classifications. For example, if a user inputs a “disc,” the AI can determine what type of disc it is and the best classification. It can also provide clear, easily understood information about its tariff schedule.
ONESOURCE’s automation is the key to furthering compliance. It can send alerts on actions and situations that the user must act on, such as a product missing its classification or inconsistencies in the harmonised system. And it simplifies the process of assigning new codes by offering possible new codes when the current ones are retired.
For companies that work with brokers, ONESOURCE allows users to create a classification request that is sent to the broker, who can then prepare the classification within the system.
Global Classification also has the APIs to connect with spreadsheets, so users can upload mass data if that’s the system they use. Then, ONESOURCE Global Trade can simplify the process of filing transactions with U.S. Customs and Border Patrol.
For overworked compliance specialists, simplification and automation can make a significant impact. It did at Georgia-Pacific, which saw a 50% reduction in time spent on classification operations after implementing ONESOURCE. That means more time for specialists to focus on value-added activities.
Researchers work 24/7 to keep up with rapidly changing rules
Thomson Reuters has a team of more than 200 researchers studying 240 countries and providing regulatory updates to its global product classification software. As the regulatory landscape remains unsettled, these updates can keep companies in the know about product importation.
Because regulatory changes are happening so fast, companies need software and a team of researchers like Thomson Reuters to ensure compliance.
For example, in 2024, this team of researchers made 100 million changes to its content. In the first three months of 2025, the team made over 36 million changes.
This illustrates the rapid pace of change that is occurring—a pace that an in-house team is unlikely to keep up with.
An integrated suite that uncovers savings in classification compliance
Beyond compliance, ONESOURCE Global Classification can impact processes throughout the supply chain. It has partner-government agency (PGA) capability for automated reporting and tracking to other agencies, such as the FDA, National Highway Safety, EPA, and others.
Global Classification integrates with other ONESOURCE products. This lets trade and supply chain experts do the analysis that will help a company’s profits. They can also find free trade agreements, foreign trade zones, and other ways to reduce the cost of tariffs.
“Think of Global Classification and content as the heart of a great global trade program,” Connell says. “You must know the thing that you’re importing. That’s the first step in it. What is this thing? How is it classified? What are the descriptions? Which government agencies do I have to report to beyond Customs? Then, once I know the thing, it interacts with all of the products within the ONESOURCE suite. The first step is knowing what this thing is, and then we can use that data and the most up-to-date content to strategise the best way to manage duty and tariffs on that product.”
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At Thomson Reuters, we understand that navigating the complexities of tariff compliance in global trade requires a multifaceted approach. No one solution can solve every problem with tariffs. Our products are designed to tackle key elements of these issues effectively. Learn more about ONESOURCE Global Trade.