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Customer Support
General QuestionsClassification QuestionsTo find a quick answer to one of the Frequently Asked Questions listed below, click on that question. Top Questions
General QuestionsGeneral QuestionsWhat is Tariff Classification?All goods that enter the United States must be categorized according to the Harmonized Tariff Schedule (HTS). The act of placing goods into the correct category is called classification. Classification determines how much duty will be collected. While it sounds simple, it involves more than looking up an item in an index. Accurate classification involves a complicated process of applying the HTS General Rules of Interpretation and the HTS section, chapter, and subheading notes as well as additional explanatory notes.How Important is Accurate HS Classification?You are responsible…Customs & Border Protection(CBP)holds Importers of Record responsible for classifying imported merchandise properly under the Harmonized Tariff Schedule (HTS) of classification. This means that importers must assign the correct HTS number and tariff description to every product imported. Further, the CBP requires importers to demonstrate “reasonable care” in doing so. The Canadian Customs Service requires importers to show the full 10-digit tariff number on every invoice at the time of release. Your profit margin depends on it… You need to know how much duty you will be paying on goods you import so that you can price your products correctly and make your profit margin. Even when your customers are paying the duty, you need to be able to tell them what the duty will be to avoid any surprise costs. Don’t miss opportunities… Further, US HTS numbers dictate the Rule of Origin for NAFTA eligibility and other duty preference programs, such as the General System of Preferences (GSP) and the Andean Trade Preference Act (ATPA). What is involved in a Customs Audit?In the event of a classification audit by either the CBP or the Canadian Customs Service, you will need to provide the basis for your classifications. Having sound answers to common audit questions can help you demonstrate reasonable care to the CBP:
How can FedEx Trade Networks Help?Get the most out of every dollar… FedEx Trade Networks has the experience and depth to perform this critical function when companies don’t have the resources, time or expertise to do it themselves. Knowing that their investment dollars are better spent on their own product lines, they ask our advisors to assist them with classification of their inventory. Our advisors will do whatever it takes to determine the correct classification number and search for the most economical tariff for the US and Canada. If necessary, we will inspect your products on-site, examine documentation, and communicate with your personnel and manufacturers. When appropriate, we will assist you in applying for a binding ruling with the CBP. We can also map the classification number to the fully qualified level for other destination countries for export purposes and to assist in an accurate landed cost calculation. In addition, we will review your eligibility for any applicable special trade agreements, including NAFTA, Generalized System of Preferences (GSP) and Andean Trade Pact ATPA.What is a product dictionary?It is a database inclusive of all the information you need in order to report and back up the correct classification number for your entire product inventory.A sound product database includes the following updated information:
Back to Top What if I want my company to perform this function?FedEx Trade Networks can train your own staff on determining US HTS classification.* We will develop and deliver a customized, in-house training seminar to meet your needs, on a date that works best for you.*Please note that only a licensed Customs broker is permitted to make a definitive classification determination. FedEx Trade Networks Trade Services, Inc. is not acting as a licensed Customs broker, but can utilize the services of its sister company, FedEx Trade Networks Transport & Brokerage, Inc.Back to Top |
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