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Integrate Tariff Codes with Inventory System
Goods entering the United States are identified using harmonized tariff codes. These HTS codes identify every possible item that may enter customs.
When an item enters customs, it may be charged a tariff and a duty. An HTS code will list both the duty and the tariff. The harmonized tariff schedule is divided into 22 sections and 98 chapters. Each section covers items such as:
SECTION I: LIVE ANIMALS; ANIMAL PRODUCTS
SECTION II: VEGETABLE PRODUCTS
SECTION XI: TEXTILE AND TEXTILE ARTICLES
SECTION XIII: STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR MATERIALS; CERAMIC PRODUCTS; GLASS AND GLASSWARE
SECTION XV: BASE METALS AND ARTICLES OF BASE METAL
So, for example, importing large slabs of slate would require searching in chapter 68,
Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials under section 13. Searching section 68 provides a detailed description of the many types of stone slate slabs. Finding a match results in a heading and subheading harmonized code for the slate. Next to the item, a tariff charge is noted as a percentage, and a duty charge is also noted as a percentage. These fees will be required of the importer once the item arrives at the customs office in the U.S.
There are thousands of harmonized tariff codes managed and updated by the U.S. Trade Commission to ensure that duty and tariffs are effectively handled. Customs also requires that certain items be searched before entering the country.
Systems are available today that can accurately identify tariff codes and their appropriate product description. Manually matching each product against the thousands of HTS codes takes considerable time, resulting in higher expenses to manage product inventories. Integrating these codes with current inventory systems means that marketing and manufacturing and distribution groups can save considerable time and potential errors incurred with erroneous harmonized tariff codes.
Because customs charges additional fees for imported goods that are not represented accurately, it pays to have a system that can assist in identifying the right tariff code.
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