Mandatory
100% HTSUS Classification
Customs
regulations have for many years required the
Harmonized Tariff Schedule of the United States
classification (HTSUS classification) to be
on the shipper’s/ seller’s invoice. However,
around twelve years ago, when Customs implemented
the electronic Border Cargo Selectivity release
program (BCS) along the Northern border, they
loosened this requirement “temporarily,” to
facilitate use of BCS. Customs required the
HTSUS classification only for items valued
over US $2,000.00 in a shipment.
US Customs
have advised the importing community that they
will require 100% HTSUS classification to 10
digits of all goods entering the United States
on and after October 1, 2004. We had proposed
to Customs a phase-in based on value, but Customs
rejected our proposal maintaining they need
HTSUS classifications on all products prior
to shipment release for both compliance and
security purposes.
Therefore,
your invoice should include the 10-digit HTSUS
classification for each product in the shipment.
Alternatively, be absolutely certain that your
HTSUS classifications are on file with PBB
prior to shipment, especially when shipping
new product(s). The consequences of not providing
the HTSUS classifications may include long
delays at the border, refused entry, and increased
cost of transportation. Also, Customs may elevate
a company’s security risk rating resulting
in intensive exams.
An exception
may apply for goods valued under US $200.00.
Commonly referred to as “Section 321” (after
the section of the trade law), this provision
allows most low-value goods to come into the
US free of duty and without having to go through
the Customs entry procedure. A document showing
the parties involved, a description, value
and country of origin is still required. Please
note, though, that there are some goods that
are not allowed the Section 321 treatment,
such as textile articles and FDA regulated
goods.
The
Customs Modernization Act requires that you
take "reasonable care" to comply with all US
Customs requirements, including correct HTSUS
classification. If you have new products and/or
you wish to ensure your current classifications
are correct, PBB’s Trade & Regulatory Services
can assist you in satisfying Customs’ "reasonable
care" requirement.
For
more information, please see the related articles
and documents:
Advance
Electronic Cargo-Truck
Customs’
Policy Regarding Identification of Ultimate Consignee
US
Customs’ memo concerning 100% HTSUS classification
Federal
Register Notice concerning Advance Electronic
Cargo Information for trucks
Customs’
internal memorandum concerning identifying ultimate
consignee
PBB’s
letter to clients- SUBJECT: URGENT: 100% Classification & ID
Number, October 1; PAPS, November 15
To view the Harmonized
Tariff Schedule of the United States, please
click here.
Important
changes in US Customs policies and procedures,
October 1
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