18 WAYS to Break Through Global Supply Chain Complexity
Mitigating Tariffs Through HTCs and FTZs
Relying on manual tools such as email and text to make these decisions can cost money and time and impact service, Jonkman says. Modern technology platforms can assemble data from various sources in close to real time, so it’s possible to make an optimal decision for the whole organization. 14. Tackle Top Challenges First. When using technology to manage a global supply chain, it’s most effective to zero in on a few challenges when starting out. “Pick the top three,” Jonkman says. Clearly define each problem and how you want to address it, considering operational, technical, labor, and other constraints, as well as how any solution will align to the broader organization. 15. Apply Strong Governance. Solid trade governance policies are key to supply chain management. For instance, without a dedicated owner or cross-functional team for tariff and trade strategy, it’s difficult to coordinate logistics decisions across procurement, finance, and supply chain, McCarney says. And absent alignment, even the best tools underdeliver. When deploying technology solutions, organizations need to continually ensure they use clean data, while also testing the results for accuracy and to determine if they’re performing as expected, Jonkman says. Implement guardrails to minimize unwanted risk. This may mean that a supervisor is notified before anyone acts on a decision generated by technology. Managing global supply chain solutions is not a “set it and forget it” project, she notes. 16. Complete Due Diligence Before Making Major Changes. Large structural changes, such as reshoring or diversifying a supplier base, can improve resilience, McCarney says. At the same time, they require thoughtful cost modeling and realistic assumptions about capital, labor availability, and lead times. For instance, when moving supply hubs, organizations may also need to find logistics providers that can move products from the factory floor to the ports and onto the ships, Mani says. They’ll also want to confirm that any new ports they move to can handle large-capacity ships, as these are often a significant factor in cost-efficiency arguments. 17. Connect with Government Agencies. Companies that make their supply chains known to relevant government agencies like Customs and Border Protection may be able to forestall some questions and delays as their goods move across borders. To start, they can provide the agencies with critical product information and let them know the company wants to comply with relevant regulations, Laney says. The parties can discuss how the company can best comply, as well as opportunities to become part of initiatives like the Trusted Trader Program. 18. Keep the Upside in Mind. Amidst the challenges facing global supply chains, a meaningful upside can be found. “Disruption is accelerating modernization at a pace we have not seen in years,” McCarney says. “Companies that treat this moment as an opportunity, not just a risk, are positioning themselves to come out stronger, more flexible, and far more competitive.”
In an environment of fluctuating tariffs and trade policy uncertainty, supply chain leaders must be proactive and creative to mitigate exposure. Many companies specifically leverage Harmonized Tariff Codes (HTCs) and utilize Foreign Trade Zones (FTZs). A focused, regular review of the HTCs a company uses can often yield significant savings. A
different, yet entirely appropriate and legal tariff code for a product may sometimes be available, leading to a lower tariff rate, notes Doug Sampson, chief commercial officer of Acme Distribution
Centers. This diligent attention to the details of trade classification can ensure the most favorable, compliant code is applied. Beyond classification, companies can explore structural changes such as shifting trade routes to legally reduce tariff costs. For example, structuring a shipment to establish a different country of origin—such as shipping goods from Asia into an intermediary country like Canada before they enter the United States—can, in some cases, result in a lower tariff rate. However, any such change requires careful calculation to factor in additional transportation costs and duties, and adherence to all relevant regulations. Foreign Trade Zones also require careful structuring. An FTZ is a secure area under U.S. Customs and Border Protection supervision, generally considered outside U.S. customs territory. Companies can bring components or materials into an FTZ under one legal, duty-free tariff code. The product can then be assembled or manufactured within the zone. Upon exiting the FTZ into the U.S. market, the finished product can be declared under a different, lower tariff code, depending on the nature of the final product and its new classification. This strategy demands upfront work to ensure all transactions are appropriately structured to remain in compliance with customs regulations, but the potential for cost reduction makes it a worthwhile consideration for businesses facing global supply chain uncertainty.
28 Inbound Logistics • March 2026
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