By NNR USA In Insight On 27th May 2021
USA - TRADE COMPLIANCE
Importers are responsible for establishing the correct Harmonized Tariff Schedule(HTS) classifications used on Customs entries for their products. While it is not unusual for Importer’s to rely on third parties such as Customs Brokers for assistance, it is in the Importers best interest to ensure proper HTS classifications are applied to their products. Communication and sharing of information with your Customs Broker is an essential part of the process.
DETERMINE PROPER HTS CLASSIFICATION
Provide sufficient information about the imported goods. Include as much detail as possible on the imported products application and use. Photos, drawings, and any information available on the product will assist in determining the proper HTS classification.
REVIEW COUNTRY OF ORIGIN BASIS AND CRITERIA
In cases where parts are manufactured in multiple countries, a review of “country of origin” basis and criteria should be performed. The U.S. has established Trade Agreements with countries around the world. Depending on the country of origin, an HTS classification may have a reduced duty amount or be free of duty, resulting in significant cost savings.
CONSIDER A BINDING RULING
For complex or new to market products, at an Importers request, U.S. Customs will issue a determination via a “binding ruling” on a products HTS classification, valuation and/or country of origin. Binding rulings can assist in providing certainty and pinpointing the exact duty amount for a particular product ahead of importation.
CHECK FOR ADDITIONAL DUTIES
Check if the imported products HTS and country of origin is subject to any additional duties or trade remedies to avoid unpleasant surprises at time of entry. Certain products are subject to Anti-dumping or Countervailing duties, trade remedies such as Section 301 China tariffs or Section 232 trade remedies on steel and aluminum products.
PERFORM AN ANNUAL REVIEW
HTS classifications are constantly updated to include new products and technology.
Applying the incorrect HTS classification can result in overpaying U.S. Customs & Border Protection (CBP) or not paying enough. In both cases, a post summary correction will be required to ensure an Importer is submitting the proper duties and fees to CBP. If the entry has already been liquidated (typically 315 days after the date of entry), a protest can be filed up to 180 days after the liquidation of the entry.
As the total review, approval, and refund timeline with CBP can be quite lengthy, it is in an Importers' best interest to apply the proper HTS codes at the time of entry - reducing the need and cost of corrections.
NNR USA's Customs Brokerage and Trade Compliance teams are available to assist our clients in navigating the complexities of HTS classification.
Maria Miliante
Assistant V.P. of Customs Operations
NNR GLOBAL LOGISTICS USA INC. - Miami
Email: miliante@nnrusa.com