PROPER HTS CLASSIFICATION DETERMINES YOUR SUCCESS AS AN IMPORTER!
Harmonized Commodity Description codes are maintained by the World Customs Organization (WCO) and used by all member countries the (WCO).
The U.S International Trade Commission(USITC) administers the Harmonized Tariff Schedule(HTS) for the United States.
The first six digits of the Harmonized Tariff code are the same for all 170 WCO member countries. The last two or four digits are country specific; in the U.S. these last four digits provide the duty rate and statistical reporting for the US Census.
Your supplier may be able to provide you with an HTS code, but note that many suppliers will provide their countries variation of the HTS code or perhaps choose an incorrect code so they can quote you lower DDP rates. In the United States the Importer is responsible for the HTS code regardless of where they obtained it. CBP does not give leniency due to inexperience and for that reason the best practice is to have your products classified by a Licensed US Customs Broker.
Why you need Customs Gurus
You are Responsible
As an importer, you are responsible for correct HTS classification. This is why it is important to supply sufficient information about the imported goods to your Customs Broker so they may determine the proper classifications. The best practice is to determine an HTS code before the shipment leaves origin.
MONEY!
You could be paying too much, or too little, by using an incorrect HTS code. The HTS is designed to uniformly identify products shipping globally. However, the United States assigned tariffs based on HTS. Using the wrong HTS creates an issue for CBP in their revenue collection mission and may result in fines, penalties, and forfeitures for failing to provide correct and accurate information.
Due Diligence
If you have been using the wrong HTS codes, or do not know if you have been, Customs Gurus can identify and fix your mistakes to avoid costly penalties during an audit. Typically, if an importer declares and corrects the error, CBP will not issue a penalty. If CBP notifies you of an error, it is important to take action immediately. Failure to respond to CBP will result in increased penalties, a demand to your surety to pay on your behalf, and possible loss of import privileges.
Informed Compliance
If you find out you have been using the wrong HTS code and have been paying too much or too little, Customs Gurus can file a Post-Summary Correction (PSC) to pay any additional owed duties or to request a refund for overpayment. If the entry has already liquidated, usually 315 days after release, an administrative protest can be filed for up to 180 days after the liquidation date of the entry.