What is an HTS Classification?
When a product is imported into the US the product must be classified under the Harmonized Tariff System (HTS). It is the responsibility of the importer, working with their Customs Broker or import consultant, to ensure that their products are properly classified under the HTS system. Today I’d like to explain a bit about this rather complicated system and hopefully help you gain a better understanding of the classification of your import products.
The HTS is a classification system that is used by over 70 countries worldwide to classify products in order to ensure regulatory compliance and that the proper import duties are assessed and paid. A more detailed description of the HTS can be found HERE
Proper HTS classification becomes even more important now that additional duties that may be due (or not due) are determined by the HTS classification code. I’ve seen cases where importers were overpaying duty, and others where they were underpaying duty, and in both circumstances the importers were at risk of financial loss and CBP penalties. If I were asked by an importer what is the most important thing they should do I would immediately suggest that they review their HTS classifications.
Importers can file a request with the CBP for a binding HTS classification ruling and this is the best way to ensure they are classifying their products correctly. If you are interested in learning more about getting a binding ruling please contact us at firstname.lastname@example.org assistance.
Remember, the proper HTS classification of our products at the time of import is a legal requirement and the failure to exercise due diligence in classifying your products can lead to severe financial penalties!
For more information about HTS Classification or other issues involving importing into the United States please contact us via email at email@example.com.