The code that determines duty.
WHAT CLASSIFICATION IS
Assigning a tariff code to the goods.
WHY IT MATTERS
It determines the duty rate, applicable levies and any restrictions.
WHAT THE SYSTEM IS
An international coded structure, extended nationally.
HOW CODES ARE STRUCTURED
Broad categories narrowing to specific products.
WHAT DETERMINES THE CODE
What the goods are, objectively, not what they are used for.
WHY DISPUTES ARISE
Many products could plausibly fall under several codes with different rates.
WHAT TO DO
Establish the code before ordering.
WHY BEFORE
Duty is a major cost component and it changes the viability.
HOW TO ESTABLISH IT
Ask your clearing agent Consult the tariff schedule Seek a ruling, where the procedure exists
WHAT TO PROVIDE
A precise description, composition and intended use.
WHAT TO AVOID
Declaring a code because it attracts lower duty.
WHY
It is misdeclaration, and the consequences are severe.
WHAT CONSEQUENCES FOLLOW MISDECLARATION
Penalties Seizure Loss of import privileges Criminal exposure, in serious cases
WHAT TO DO IF YOU DISAGREE WITH A CLASSIFICATION
Object through the proper process, with technical evidence.
WHAT EVIDENCE HELPS
Manufacturer specifications Composition analysis Rulings in comparable cases
WHAT TO KEEP
The classification used, and the basis.
