Commodity classification

Commodity classification is the process of categorizing goods according to the Harmonized System (HS) or other classification frameworks used for customs, trade, and taxation purposes. Proper classification ensures compliance with tariff regulations, determines the correct duty rates, and helps businesses optimize costs when importing or exporting goods.

Here’s what’s involved:

• Harmonized System (HS) Code Assignment: Every product is assigned a unique HS code based on its material, function, and intended use.
• Customs and Trade Compliance: Ensuring the classification aligns with national and international trade regulations to avoid penalties.
• Tariff Determination: Identifying applicable tariffs, import duties, and tax rates based on the assigned classification.
• Rules of Origin Evaluation: Determining eligibility for reduced tariffs or exemptions under various Free Trade Agreements (FTAs).
• Regulatory Requirements: Some commodities require additional approvals, permits, or sanitary/phytosanitary certifications depending on their classification.
• Risk Assessment: Avoiding misclassification that could lead to fines, delays, or higher duty payments.

Would you like guidance on classifying a specific commodity? I can help break down the details even further!