Harmonized System Tariff Classification

Customs Duty

Financial obligations of the importer are determined by the specific heading and subheading assigned to the merchandise. A slight change in the harmonized system tariff classification can move a product from a duty free category to a high tax bracket. This happens when the fiber composition or the construction method of the fabric is described differently.

Fiber Composition

Physical properties of the textile determine the primary digits of the code used in the declaration. Accurate harmonized system tariff classification relies on laboratory reports that confirm the exact weight of silk, wool, cotton or synthetic polymers in the blend. The presence of a coating or a laminate also changes the categorization of the material.

Global Trade

Uniformity in the description of goods allows for the comparison of export and import data across different national jurisdictions. Because the harmonized system tariff classification is used by over two hundred countries, it simplifies the negotiation of free trade agreements. It provides a common language for supply chain logistics.