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Crossborder


TARIFF CLASSIFICATION FOR U.S. AND CANADIAN IMPORTERS: A CRITICAL AND
UNAVOIDABLE STEP IN CROSS-BORDER SHIPPING




According to U.S. Customs and Border Protection (CBP), tariff classification
mistakes are a top cause of shipment clearance delays, as well as a red flag for
a potential customs audit.  Every product entering or leaving the United States
must be assigned a classification code, but assigning the correct code can be a
daunting exercise. 

Tariff classification is the process of determining the correct tariff code for
goods crossing international borders.  It is an unavoidable, yet highly
important step in the worldwide customs clearance process since a shipment’s
assigned tariff code will determine duties and eligibility for duty-free status,
among other factors. Identifying the correct code though, can be difficult. 
It’s easy to make a mistake, with an error potentially resulting in
under-or-over-payment of duties, missed free trade agreement benefits, punitive
penalties, and delays in the customs clearance process. 

Our whitepaper provides an in-depth overview of the U.S. Harmonized Tariff
Schedule, along with information about why proper classification is essential.
We also dive into:

 * What you need to know about the International Harmonized System 
 * How tariff classifications work and the purpose of classification codes
 * What you need to know when importing to Canada and the Customs Tariff System 
 * Understanding Canada’s Customs Tariff System and how to avoid classification
   errors 


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