HTS Classification by industry
Electronics imports cover everything from semiconductors and printed circuit boards to consumer devices and industrial sensors. With Chapter 85 containing over 600 subheadings and the Information Technology Agreement (ITA) granting duty-free status to many products, the classification challenge is identifying which products qualify for 0% duty and which face Section 301 surcharges. Camtom provides AI-driven classification to optimize duty savings.
Determining ITA eligibility — many electronics qualify for 0% duty under the WTO Information Technology Agreement, but the product must match specific HTS subheadings
Classifying multi-function devices that combine computing, communication, and sensing capabilities (e.g., smartwatches, IoT devices)
Navigating Section 301 tariffs on Chinese-origin electronics that add 7.5% to 25% on top of MFN rates
Distinguishing between parts and accessories — a phone case (3926) vs. a phone screen (8524) vs. a phone battery (8507)
Classifying semiconductor components at the correct specificity level (wafer, die, packaged IC, module)
Classifying a tablet computer under 8471 (computers) instead of 8528 (monitors with processing) based on screen size and primary function
Missing ITA duty-free treatment on eligible semiconductor equipment by using an overly general HTS code
Treating wireless earbuds as headphones (8518) when they contain computing capability that pushes them to 8517
Classifying PCBAs (populated circuit boards) under 8534 (bare PCBs) instead of by their function in the final product
Failing to exclude Section 301 products from duty drawback claims, resulting in rejected drawback entries
Many electronics enter at 0% under the ITA. Non-ITA electronics under Chapter 85 range from 0% to 3.9%. Section 301 adds 7.5% (List 4A) or 25% (Lists 1-3) on Chinese-origin goods. USMCA-qualifying electronics enter duty-free.
Under USMCA, most electronics qualify through a tariff shift rule — the finished product must undergo a change in tariff classification from its components within a USMCA country. For some products, an RVC of 50-60% is required. USMCA certification is required at entry.