Importers must know how to classify imported products using the Harmonized Tariff Schedule of the United States (HTSUS).  By becoming knowledgeable of the Harmonized System (HS), importers will know how to use the HTSUS properly.

Exporters knowledgeable about the HS will understand how to use The Schedule B (also known as the Statistical Classification of Domestic and Foreign Commodities Exported from the United States) properly. 

Knowledge of the HTSUS and Schedule B is necessary:

• To determine applicable import tariff rates and whether a product qualifies for a preferential (that is, reduced or free) tariff under a free trade agreement
• To permit the accurate filings of import entries with U.S. Customs and Border Protection
• For exporters, to file accurate the Electronic Export Information (EEI) filings with the U.S. Government
• To accurately complete shipping documents, like import and export invoices
• To keep importers, exporters, and others in the international supply chain secure and happy
• To stay out of trouble with U.S. Customs and Border Protection, the U.S. Census Bureau, and the Bureau of Industry and Security
• To avoid import and export clearance delays and possible seizures of imported and exported products, as well as the loss of customer good will
• To avoid costly and aggravating fines and penalties

Classification is the process through which imported goods are categorized according to a uniform identification system for the purpose of assessing duty or taxes and/or imposing restrictions upon imports.

Incorrect classification can result, not only in improper duty liability, but also in a change in import requirements or eligibility for duty free programs.  Changes in tariff rates can positively or negatively affect the financial viability of a transaction. Fees and taxes are also affected by classification.

While often addressed only after importation, classification should more appropriately be considered during the design, costing, and sourcing of a product.

Classification is also the process through which exported products are categorized according to a uniform identification system for the purpose of identifying them so that exporters can submit required Electronic Export Information (EEI) filings (aka Shippers Export Declarations) through the Automated Export System.

Although there is no duty assessed on exported products, incorrect classification can result in ineligibility for duty free programs in the country to which the items are being exported.     

Incorrect classification of imported or exported products can and do result in detentions, seizures, costly fines and penalties with U.S. government agencies like CBP, the U.S. Census Bureau, and the Bureau of Industry and Security.  Incorrect classification of products also cost importers and exporters the loss of valuable time and resources, reputation, and client good will.   

Simply put, you should attend because it is important to understand how to achieve the most beneficial classifications and stay out of trouble.

Classification of import and export products requires four (4) things:

• A detailed understanding of your product
• An understanding of the tariff page
• An understanding of the language of the Harmonized System
• An understanding of how to apply the tariff rules and how they will affect your classification