When items are commingled, how do you decide which HTS to use?

When items are commingled, the correct approach is to select the HTS (Harmonized Tariff Schedule) that results in the highest duty rate for the items being classified. This is because customs regulations typically mandate that in cases where multiple classifications are applicable, the classification that results in the highest duty rate should be applied. This ensures that the full value of the duties is accounted for, helping to protect revenue for the government and maintaining compliance with customs regulations.

Applying the highest rate also aligns with the principle that it is better to be conservative in duty calculations, ensuring that no underpayment occurs. It is a protective measure for customs agencies when items are not clearly classifiable into one distinct category. This approach promotes fairness and consistency in tariff application.

Selecting the first listed HTS or the most common HTS does not necessarily ensure compliance with customs regulations, as these options may lead to underpayment of dues owed. Choosing the lowest duty rate would similarly jeopardize proper revenue collection and adherence to regulatory standards.