This afternoon I participated in a webinar presented by Customs Info/Descartes on “Best Practices in Global Classification Compliance”. The first half of the webinar consisted of a good refresher about classification compliance. The Customs Modification Act requirement of reasonable care was defined as a solid process of research support and documentation. The presenter reminded the audience that:

• Classification is subjective- tariff schedules do not necessarily keep up with technology
• Customs definitions can differ from industry definitions
• Different interpretations exist between countries and also between ports within the same country

 

The basic components of a best in class process are:

1. Break down items from universe into groups
2. Research- even if you think you know the correct classification    customsinfo.com is a good tool
3. Identify necessary info needed for classification such as materials, dimensions, intended use, etc
4. Documentation- needed to support your determination
5. Automation- implementing a software classification tool will improve efficiency and productivity
6. On-going maintenance and monitoring for changes in HTS binding rulings and in your products is essential

 

Supporting documentation includes

• spec sheets, drawings, photos
• info requests from engineers, scientists, chemists, etc
• HTS chapter and section notes that apply to your product
• explanatory notes
• informed compliance publications
• customs rulings that apply to your product
• record keeping (5 years)

 

Contact Ad Hoc Logistics for help with classification and compliance.