What is the importance of declaring the correct Tariff Classification (HS Code) for imported/exported goods?
Issue: HS Codes determine duty rates, VAT refund on exports, Automatic Import Licensing, Commodity Inspection and CCC etc. Customs will routinely review and audit tariff classification. Solutions: – Obtain advance written rulings. – Prepare documentation that supports your declared HS Code. – Leverage global (HQ) tariff classification systems. 5. How do you reduce customs duty costs using Free Trade Agreements (FTAs)? Issue: FTAs are a significant source of customs duty savings on imported and exported goods. The China government has implemented and is still negotiating several FTA agreements. FTA benefits are not granted automatically – factories must be registered, cost documents prepared, and certificates obtained on a shipment-by-shipment basis. Solutions: – Review China FTAs in relation to the overseas countries that you trade with. – Calculate customs duty savings per product and per country – Implement guidelines so that proper documentation can be obtained in order to support u
