How Important is Accurate HS Classification?
You are responsible: Customs & Border Protection (CBP) holds Importers of Record responsible for classifying imported merchandise properly under the Harmonized Tariff Schedule (HTS) of classification. This means that importers must assign the correct HTS number and tariff description to every product imported. Further, the CBP requires importers to demonstrate “reasonable care” in doing so. The Canadian Customs Service requires importers to show the full 10-digit tariff number on every invoice at the time of release. Your profit margin depends on it: You need to know how much duty you will be paying on goods you import so that you can price your products correctly and make your profit margin. Even when your customers are paying the duty, you need to be able to tell them what the duty will be to avoid any surprise costs. Don’t miss opportunities: Further, U.S. HTS numbers dictate the Rule of Origin for NAFTA eligibility and other duty preference programs, such as the General System of P
