The proper classification of a commodity is the driver for nearly every component in a cross-border transaction. This includes duty assessment, documentary requirements, and the data that may need to be transmitted to satisfy partner government agencies like the U.S. Food and Drug Administration, Environmental Protection Agency, and the Department of Agriculture.
We encourage our clients to periodically review the tariff codes that are used for their goods. The tariff schedule can change multiple times per year, so a periodic review should be a part of your company’s compliance protocol. Since January 1st of 2022, The United States International Trade Commission (USITC) has made three (3) revisions to the schedule. The current tariff schedule can be found here.
Even if your company has ‘always used this tariff number’ or if the tariff number as ‘provided by the supplier,’ it may not be correct. Your company is responsible for ensuring the tariff number is accurate. These types of proactive, internal protocols will give your company a greater knowledge of costing and requirements necessary to successfully navigate trade with the United States.
The United States International Trade Commission (USITC) offers a free, online training module on their website to help you, or your employees, become proficient in the classification of merchandise. This three-hour class won’t make you an expert, but it will serve as a foundation of understanding.