Correct tariff classification of your imports into the US is necessary but not sufficient if you engage in global trade. Every country requires correct classification as per their national tariff schedule. Your involvement depends on the nature of your export. On sales to related parties, your importing entity is responsible to provide the correct local classification. In a logical world this will be identical to the US classification to the first six digits; in the real world it often is not. On arms-length sales to dealers, distributors or customers, the importer of record carries the responsibility for correct classification.
In either of these cases there is a significant possibility of goods being imported using incorrect classifications. These usually surface when you review classifications across foreign entities and compare the results to your verified US data. They can also surface when your importing entity complains that your classification carries a higher local duty rate than that being paid by a competitor using a different classification.
Harmonized Tariff Services can help mitigate both the compliance and profit risks by classifying your goods in the tariff schedule of the importing country. We have extensive experience providing local classifications for:
- European Union