TradeLane

This week we feature The Expeditors Podcast with host Chris Parker. The podcast shares observations, perspectives, and discussions on front-of-mind topics impacting the logistics and freight-forwarding industry through the lens of  a global logistics provider.

This week we feature The Expeditors Podcast with host Chris Parker. The podcast shares observations, perspectives, and discussions on front-of-mind topics impacting the logistics and freight-forwarding industry through the lens of Expeditors, a global logistics provider. Expeditors generates highly optimized and customized supply chain solutions for their clients with unified technology systems integrated through a global network of 357 locations in 60+ countries on six continents.

This is one of those scenario’s we see all the time:

Asia Customs Broker: Hello, Mr. Ahmad, we are sorry. The customs manual documentation cannot be completed because we are missing the HS codes. Can you provide us with the correct one so that we can proceed with the permit application and import declaration, please?

Logistics Employee: Can’t you check our previous shipments? This is not the first time we have imported similar materials into our warehouse! You should have all the details!

Recently there have been a lot of headlines about who will do what when it comes to trade. In the U.S. a big piece of the recent election turned to “protection” of industries, workers, etc. In fairness, I’m a free trade kinda guy. It directly pays my salary. I’m willing to bet there are a number of people who don’t realize their salary, in part at least, is also subject to free trade.

Free trade agreements don’t just work for goods that cross borders, they also play in a lot of other arenas. For instance, the service sector, which includes remediation of disputes, human rights, fair labor standards and practices.

Ever wonder why we haven’t had any “major” conflicts in the past 70 odd years? Trade in general and free trade specifically have a lot to do with it. Why would you want to go to war with your biggest customers?

Accuracy of your HTS classifications is as important as ever.  Have you reviewed your current classification database? Are you aware there could be fines and penalties for incorrect tariff codes.  Coming up, Tradewin will have a two part blog series outlining the importance of accuracy, but first, a reminder of why it is so important!

HTS Classification is a necessary evil. Unfortunately, it is an evil that must be revisited often. There are various ways to approach harmonized tariff classification from doing it yourself, hiring a third party service provider, or just putting the pages up on the wall and throwing darts at it to determine which HTS Classification to use. (While the last one is a great way to relieve the stress of classification, I personally would not recommend this method).