Your business needs to understand CLASSIFICATION. And here's why.
Did you know that a single misstep when calculating tariff classification codes may cost your business thousands of dollars?
But first, why is it so important?
Many importers overlook a lot of details in Entry Summaries. More importantly, it is imperative that every single item is classified correctly, for one wrong classification – multiplied by the time it was used may be the biggest mistake done in a shipment. Hence, results in you paying upwards of thousands of dollars you could have saved. And because brokers tend to wear many hats, it is unavoidable that they rush through 7501’s and you end up having numerous items either overlooked or under-classified.
The importer needs to be extra vigilant when they are calculating the tariff on the goods imported.
Here’s an example: Many importers tend to be unaware of the correct classification codes to use per their products and tend to dramatically overpay on imported goods' duties. To get hands-on with the correct numbers and not pay excessive import duty, the smartest way to ensure correct classification codes is to utilize a Master Customs Classification Specialist, such as those housed at CITTA Brokerage Co. They are well-versed with the changing rules and are constantly keeping up to date as to how to best tariff engineer codes to maximize the result. The specialists will help in calculating the correct duty charges to be paid.
How Customs Classification Specialists Help Importers
Filing Entry Summaries or Form 7501’s requires importers and brokers to be very watchful of the rules of regulations set by the U.S. Customs and Border Protection. Did you know that studies show that nearly 15% of goods are misclassified and importers are blindly paying charges that are not even accurate?
The Harmonized Tariff Schedule of the United States sets forth the tariffs to be calculated upon the imported goods. The Customs Classification Specialists are aware of the chapters and each section of the HTS in the US.
As stated above, nearly 15% of products are classified wrongly, which means 65% of the products are costing the importers heavy-duty charges. Even 35% of these items are depriving the US government of any kind of revenue.
While classifying the imported goods, it is necessary that the importers must acknowledge the chapter notes along with the tariff codes and their schedule. Most of the time the importers are not aware of the Harmonized Tariff Schedule, so it is mandatory to take the services from the customs classification specialist.
As tariff schedule contains 99 chapters under 22 sections under HTS, so it is significant for the importer/specialist to know the precise code of the particular item. This will help in calculating the import duty efficiently. For this, the services from the experienced specialist will support the importers.
The benefit of taking the services from the Customs Classification Specialist is that they will quote the correct duty rate. This will not cost you overhead charges or an extra penny while paying the import duty.
The number of issues reaching up to 30% will also be reduced by taking the services from the specialist. This will also support the importers to get the required refund amount from the government.
The Devil is in the details
Pun intended; we have the devils on our side of the court to deal with all the paperwork. From collecting all the needed supporting documentation, have our master classifiers and classification specialists fix incorrect entries and file an amended 7501 which results in you getting refunds you never knew existed. We are very detail-oriented. Trust!
Make sure to join our Understanding CLASSIFICATION free webinar!
OCTOBER 6, THURSDAY
11:00-12:00 pm MDT | 1:00-2:00 PM EDT
𝗖𝗜𝗧𝗧𝗔 𝗕𝗿𝗼𝗸𝗲𝗿𝗮𝗴𝗲 𝗖𝗼. - Your neighborhood Duty Drawback experts!
Call us at 801.479.7873 or email firstname.lastname@example.org