TradeLane

Incoterms® are defined by International Chamber of Commerce (ICC) to facilitate trade across the globe. They are internationally accepted standards which define the responsibilities of sellers and buyers for delivery of goods under sales contracts. Incoterms® are used to specify how the costs and risks associated with the cross-border transportation of goods are borne between the buyer and seller.

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

Asia Customs Broker: Hello, Mr. Ahmad, we are sorry. The customs 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!

Binding rulings allow an importer to get a determination on the correct classification and duty rate for their products in advance of importation.  A binding ruling request can be submitted electronically or in a letter to the CBP Information Exchange, National Commodity Specialist with a detailed description of the product along with relevant specifications, descriptive literature and samples. The importer generally receives a response within 30 days. Once Customs issues the ruling, the classification is binding for all US ports.  

The CBSA Audit Priorities were recently released for the second half of 2016. This gets called many things “Trade Verification Priorities” or the “CBSA Audit Target List” or just “2016 Audit Priorities”. Whatever name this gets really doesn’t matter, it’s a most wanted list.

Yep, the Marshal has put out the targets they’re gunnin’ for; and if yer importin’ them into Canada yer a most wanted importer.

Ok! You can lose the John Wayne or Yosemite Sam voice now.

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).