Classification
All products must be classified prior to entry into the United States, making this an essential step in the entry process. It also dictates the tariff rate associated with the item, which importers care about.
With 99 chapters and 17,000 unique HTS codes, it sounds like there are enough classification to make your head spin, but it really isn’t that complicated. Importers are obligated to exercise reasonable care in the manner with which they classify their items. Legislative history and CBP guidance identify practices that are illustrative of reasonable care. These practices include consultation with experts such as licensed customs brokers thought that isn’t an absolute requirement. By leveraging our deep experience in classification and homegrown importer tools, we create a powerful, data-driven, and highly competent product library.
The classification should not be left until the time of importation. This is a poor practice and leads to sloppy entries, limited foresight into landed costs and other reduced compliance. To avoid this, collaboration is the key. We want to communicate with your purchasing team, your buyers, etc. These are the people closest to the products and with their assistance, AJH Elite Inc. will establish the correct classification and commercial description for every product your business imports. Most importantly, we will be able to articulate the reason for each classification should you be challenged by U.S. Customs.
We bill a bit differently for classification. Each pricing plan comes with an annual allocation of free classification and we charge $5 per classification beyond that. If you are thinking “wait a minute, my current broker doesn’t charge me for classification”. And trust us, your broker is charging for it in other ways, if not directly.
Binding Rulings
The Harmonized Tariff Schedule has some ambiguity and new products are brought to market constantly. To avoid uncertainty, U.S. Customs has a system that allows an importer to request a definitive or binding ruling. A Binding Ruling in favor of the importer (meaning the lower tariff rate) can be hugely beneficial.
If you are considering obtaining a Binding Ruling and want to discuss your specific situation, please contact us.