As an independent consultant and Licensed Customs Broker my most frequent client requests are for classification help. While some commodities are easy to classify, most require research and interpretation. Here is an example of an easy one with no research or interpretation needed:
9506.69.2040 Baseballs
Here is one which is more challenging and time consuming:
8532.10.00 00 Fixed capacitors designed for use in 50/60 Hz circuits and having a reactive power handling capacity of not less than
0.5 kvar (power capacitors)
There are 3 ways to classify: 1) self classify, 2) consult with commodity manufacturer, 3) request rulings from CBP (imports) or BIS (exports).
HTS and Schedule B best practices include checking and confirming commodity classifications at least annually starting with a few universal principles:
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:
Break down items from universe into groups
Research- even if you think you know the correct classification
Identify necessary info needed for classification such as materials, dimensions, intended use, etc
Documentation- needed to support your determination
Automation- implementing a software classification tool will improve efficiency and productivity
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 mitch@adhoclogistics for immediate assistance.