Why is it that chemicals and pharmaceutical items are often classified incorrectly? The answer has more to do with the nature of pharmaceutical trade than the complexity of the tariff (though it is complex). In an industry with its fair share of non-commercial product movements for testing, diagnosis, analysis, and new product development, that ‘newness’ and the speed at which product moves can make compliance determination challenging. However, meeting reasonable care standards makes attention to and investment in an accurate classification process critical. Here are some tips on how to get it right.
Earlier this year, the World Customs Organization (WCO) released 2022 Harmonized System (HS) Updates. These updates mark the most significant change in the HS nomenclature in five years and require an adjustment of HS codes in member countries. Since this release, US importers have been preparing for the implementation scheduled for January 1, 2022, while monitoring changes in other import markets.
