Tariff

Related terms

HTS code

An HTS code is the 10-digit classification number under the Harmonized Tariff Schedule of the United States that sets the duty rate for an imported product. The first 6 digits follow the international Harmonized System. Wrong classification can mean overpaid duty, penalties, or missed tariff exclusions.

Landed cost

Landed cost is the total cost of a part delivered to the buyer's dock, including piece price, tooling amortization, packaging, freight, insurance, duties, tariffs, brokerage, and inventory carrying cost. Comparing offshore and domestic quotes on piece price alone understates the cost of the offshore part.

Reshoring

Reshoring is moving production that had been offshore back to the buyer's home country. Buyers reshore to shorten lead times, cut inventory, reduce tariff and freight exposure, and protect intellectual property. It pays off when quotes are compared on landed cost, not piece price.

Nearshoring

Nearshoring is moving production to a nearby country, for US buyers usually Mexico or Canada, to cut transit time, inventory, and tariff exposure while keeping labor costs below domestic levels. Parts that meet USMCA rules of origin can enter the US duty-free.