WHAT IS THE HARMONIZED TARIFF SCHEDULE AND WHY IS IT IMPORTANT?
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When commodities are imported into the United States, the regulations require that the correct ten digit harmonized tariff code be assigned. The harmonized code must be reported on the entry summary to Customs, and must be accurate based upon the properties of the article. The tariff code determines the duty rate that applies to the imported goods. Further, the tariff code helps Customs determine if there are other government agencies that have importation requirements for the item. Additionally, the information contained in the tariff code allows the Census Bureau to compile Importation Statistics.
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Chosing the HTS number is the legal responsibility of the Importer. Companies that hire experts to help classify their products ensure that they meet that legal obligation. Further, they insulate their company from negative outcomes, such as additional duty bills, and penalties. The expense of hiring an expert is mitigated by the efficiency and accuracy afforded by the consultant. The short term investment of ensuring the products are classified professionally can pay off several times over in the face of a Customs Audit.
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Clare Updike, LCB
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