Several Things to Remember About Harmonized Tariff System (HTS) Classification

Harmonized Tariff System (HTS) codes are international tool which is maintained by World Customs Organization (WCO). More than 160 nations take part in WCO's HTS classification system. The primary six leading digits of HTS code recognizes all products in the international commerce and is uniform for all nations that utilize HTS. However, the final two to four numbers are specific for certain countries; for instance, in the United States, the final four digits define the rate of duty and trade balance statistical report suffix for products that are imported.

Being the importer, you must be aware that you shall establish the right hs code classifications that are utilized in your imported products and together with it is the ISF security information. This emphasizes the importance of establishing the correct data about your products is stated to CBP and avoid trust on third parties to fathom your products in order to acquire HTS classifications to yourself. The responsibility of the importer is providing sufficient data about the products imported so a customs agent expert may easily identify the right categorization of the products
Since hts code is primarily used as a classification system in order to attain uniformity of identifiable products and impose tariff system on imported products, as the importer, you will have penalized if you use the incorrect HTS code. Wrong HTS will give a false result in the sum of payments whether it will be overcharged or undercharged. This makes a problem for CBP in sourcing their income collection and would force them to issue penalties for not giving the accurate and correct information.
If you happen to be a user of incorrect HTS codes, it is highly advisable for you to fix it immediately to avoid unnecessary fines. Also, if you happen to find out you are utilizing an incorrect HTS code and paying the wrong amount, you can report to Post-Entry Amendment (PEA) to compensate owed responsibilities or if overpayment, you can ask for a refund.

HTS codes are dynamic. It is constantly changed and updated internationally to permit new innovations of technology and products. In addition to that, most governments are assessing new sources of income and looking for ways to stabilize their commerce with other nations. In the United States, if an HTS code is made, an expiration date is encrypted in it to permit updates. So always remember to make sure that the HTS codes you are operating are validated. Check this video about tariff code: