How to ensure compliance with trade classification
How automation simplifies classification compliance
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 Optimization can minimize the impact of tariffs.
Highlights:
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Determining the correct tariffs to pay in the U.S. used be fairly straightforward: Each product was assigned a harmonized Tariff Schedule Code (HTS number), which determined the amount. With President Trump’s recent changes to tariffs, not only has the rate increased, but also ensuring compliance is much more complicated. Companies must also consider the components that make up the product, as they can have their own HTS code. Each product has multiple codes and may have an additional HTS code depending on the country of origin.
“It’s not really a product that comes in anymore,” says Liz Connell, V
ice President of Product Management ONESOURCE Global Trade with Thomson Reuters. It’s a complex matrix of components and countries, and the tariffs keep piling up. 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 Trump administration to enforce the classifications. Connell says that they are highlighting the importance for accurate classification enforcement. “There has been a change in approach with a greater focus on identifying and correcting misclassifications. The consequences of non-compliance are more severe now than ever before. 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 customized ERP are no longer feasible approaches to managing classification. Automation is the answer. That’s where
ONESOURCE Global Classification can help.
Automation provides simplified visibility into your classification processWith 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 also–provides clear, easily understandable information about its tariff schedule. The automation of ONESOURCE is key to achieving compliance. It simplifies the process of assigning new codes by offering possible new codes when the current ones are retired. It also simplifies the assignment of new codes, by allowing users to create a request for classification that is sent to a broker who can then prepare it within the system. 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 was the case at Georgia-Pacific. The company saw a 50% decrease in time spent on classifying 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. The team made 36 million changes in the first three months in 2025. This illustrates the rapid rate of change, which an in-house team would not be able to keep up with. It has a partner-government agency (PGA), which allows for automated reporting and track to other agencies such as the FDA. National Highway Safety. EPA or others. Global Classification integrates seamlessly 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 understand the item that you are importing. This is the first step. What is it? What is the classification? What are the classifications? What other government agencies am I required to report to besides Customs? Once I know what it is, then it will interact with all the products in the ONESOURCE suite. Learn more about ONESOURCE Global Classification. If so, learn more about ONESOURCE Global Classification. At Thomson Reuters, we understand that navigating the complexities of tariff compliance in global trade requires a multifaceted approach. There is no single solution to every tariff problem. Our products are designed to address key elements of these issues. Learn more about ONESOURCE Global Trade
.
