Suppliers Providing HTS Advice IS Transacting Customs Business

Posted by Matt Springate
Blog originally posted on 28/10/2022 07:45 AM

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US Customs and Border Protection (CBP) issued ruling H290535 on September 29th, 2022, which specifies that CBP interprets suppliers providing HTS Classifications to US Importers of Record as “transacting customs business” and requiring a customs brokerage license.

In this scenario, the company providing HTS classifications to IORs was a supplier and provided HTS information at an eight and ten-digit level with written disclaimers accompanying the tariff codes that importers are responsible for validating their own HTS classification.

CBP has long held that classifying products is considered “transacting customs business” and should be done by a license-holder if not completed by the importer of record. The act of classification is further defined as providing advice and guidance at an eight and ten-digit level. CBP reaffirmed in this ruling's previous guidance that providing classification information at the six-digit level is not considered transacting customs business as six-digit HTS codes are insufficient for entry.

There are several real-world implications for this. If you have questions on how this impacts your overall compliance program, please don’t hesitate to contact Tradewin.

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Topics: Classification, Customs

Blog originally posted on 28/10/2022 07:45 AM

Matt Springate

Written by Matt Springate

As Principal for Tradewin’s US consulting practice, Matt brings extensive experience in working with importers and exporters to perfect their compliance operations. He specializes in duty recovery programs, preferential trade agreement qualification, tariff classification, prior disclosures, and audit support. Preceding this role, Matt was Principal of Tradewin’s European practice for five years, based in the United Kingdom. There, he managed a team of consultants across multiple European countries providing both tactical and advisory services for customers. Prior to relocating to the UK, Matt served as Tradewin’s Manager of U.S. Duty Drawback services, and as an Advisory Services Consultant. Matt holds a Master of Arts degree in Diplomacy and International Commerce from the University of Kentucky and a Bachelor of Arts degree in Political Science from Furman University. He is a Licensed Customs Broker and is IATA/FIATA Certified. Matt is based in Boston, Massachusetts.