These codes tell customs officials what is being imported, if the goods are admissible, and what taxes, if any, are due. Any importer who gets the classification wrong is violating import laws. As a result, the importer is vulnerable to delayed cycle times, confiscated shipments, and fines.
Why is the HTS important?
The Harmonized Tariff Schedule is critical in ensuring fair, accurate processing of tariffs for US imports. From maintaining productivity to ensuring compliance with import laws, the benefits of the HTS extend far beyond the consequences of not using it.
Why was the classification of the goods significant?
Classification of goods is relevant from a customs point of view. It has an impact on customs duties, excise duties, import VAT, origin management, preferential duties and import and export restrictions. For this reason, the importance of correct classification cannot be underestimated.