It is business as usual for Pacific Customs Brokers on Victoria Day, Monday, May 20, 2013. Our doors remain ALWAYS Open 24/7 regardless of Statutory and 
Civic Holidays.
Archive for the ‘HS Tariff’ Category
Victoria Day – Our Doors Remain Always Open
2013 Winter Spring Trade Compliance Seminars
Pacific Customs Brokers hosts a series of educational Trade Compliance Seminars and workshops throughout the year. Attendees of these seminars gain knowledge in the most up-to-date government regulations for both importing and exporting into Canada and the United States.
Our presenters will cover a wide scope of topics such as:
- Canada and U.S. Customs and other government agencies requirements
- NAFTA and free trade agreements eligibility
- Documentation and the importance of accuracy
- Responsibility of the importer and exporter
- Shipping logistics
- Role of a Customs Broker
- ACI & ACE eManifest
- Customs Audits
Many of our Trade Compliance Seminars are recognized by the Canadian Society of Customs Brokers (C.S.C.B). Upon completion, our attendees receive points towards the maintenance of the CCS designation.
Who Should Attend:
These seminars and workshops are designed to assist business owners, importers, managers, CFO’s, purchasers and shippers on a variety of Customs and international shipping related topics.
Trade Compliance Seminars Offered:
- Canada Customs Audit
- Canadian Customs Compliance
- Canadian Food Inspection Agency (CFIA)
- Global Export
- H.S. Tariff & Classification
- NAFTA Workshop
- Partners in Protection (PIP) & Customs Trade Partnership Against Terrorism (C-TPAT)
- U.S. Customs Audit
- U.S. Customs Compliance
- U.S. Food and Drug Administration (FDA)
- Doing Business in the USA
- ACI eManifest Info Session
2013 Trade Compliance Seminars:
Canadian Customs Compliance
This 3 hour session will provide a general overview of importation into Canada. We will cover such topics as: Customs regulations, required documentation, North American Free Trade Agreement eligibility and the logistics of seamless cross-border shipping. The knowledge gained at this seminar could directly affect your shipments crossing the border. Shipment delays and possible penalties issued by Canada Border Services Agency could be the result of not being informed and compliant.
For registration and more information, visit:
U.S. Customs Compliance
This 3 hour session will provide a general overview of importation into the United States. We will cover such topics as: Customs regulations, required documentation, North American Free Trade Agreement eligibility and the logistics of seamless cross-border shipping. The knowledge gained at this seminar could directly affect your shipments crossing the border. Shipment delays and possible penalties issued by U.S. Customs and Border Protection could be the result of not being informed and compliant.
For registration and more information, visit:
NAFTA Workshop
In our North American Free Trade Agreement (NAFTA) Workshop for Canadian & U.S. companies we will:
- Assist you in understanding your responsibilities under NAFTA
- Provide you with practical tools for completing certification of your products
- Provide instruction on the Rules of Origin and classification of your goods under the Harmonized Tariff Schedule
For registration and more information, visit:
ACI eManifest Info Session
This session will answer questions, offer practical solutions and help assist with preparation for the ACI eManifest regulations that came into effect November 1, 2012 and will be mandatory May 1, 2013.
For registration and more information, visit:
CFIA Seminar
By attending this seminar, you will gain a better understanding of how Canadian Food Inspection Agency (CFIA) and Canada Border Services Agency interact. The knowledge you will acquire will expedite your shipments rather than trigger costly delays.
For registration and more information, visit:
FDA Seminar
By attending this seminar, you will gain a better understanding of how the U.S. Food and Drug Administration (FDA) and U.S. Customs and Border Protection interact. The knowledge you will acquire will expedite your shipments rather than trigger costly delays.
For registration and more information, visit:
Canada Customs Audit Seminar
This seminar will focus on the differences between voluntary and enforced compliance, the term “reason to believe”, the potential cost risks of non-compliance, and best practices.
For registration and more information, visit:
U.S. Customs Audit Seminar
This seminar will focus on the differences between voluntary and enforced compliance, the expectation of “reasonable care”, the potential cost risks of non-compliance, and best practices.
For registration and more information, visit:
For a complete list of our Winter Spring Trade Compliance Seminar schedule, download a copy here: Spring 2013 Trade Compliance Schedule
Customized Seminars and Workshops
We also tailor seminars to suit your industry or company needs. Some of our customized seminars have been specific to sports, special events, agriculture, produce and industrial equipment. Contact us to discuss your seminar requirements today.
- Toll Free: 888.538.1566
- Phone: 604.538.1566
- Email: seminars@pcb.ca
Additional Resources:
4 Reasons for Determining the Correct Harmonized Tariff Classification
The dilemma: You are always getting calls from your customs broker asking for further information about your products. When asked “why”, they respond that they need to determine the correct harmonized tariff classification.
To the uninformed observer, why care? I mean let us be honest… all you want to know is… “Do I have to pay customs duty on these goods?” Right?
Like everything, you need to peel back the layers to see what lies beneath. First of all, let us briefly examine the complexity of the tariff schedule as defined by the harmonized system.
The Harmonized System (H.S.) Tariff Schedule
The H.S. Tariff Schedule is comprised of 21 sections with 96 chapters; in Canada there are over 12,000 individual tariff classifications at the ten digit level. There is a specific hierarchy (the General Rules of Interpretation) which defines the methods used to determine a product classification. Additionally, there are sections, chapters and explanatory notes to consider, plus further rules defining how to navigate the punctuation and use of dashes or hyphens. Granted, some items can be classified easily but many require an expert with years of tariff classification experience.
Key reasons why “getting it right” is so important:
Let us start with the area that everyone is aware:
- Duty rates: The tariff classification has a direct correlation to the duty rate that you will be expected to pay (and no, it is not a matter of “finding the one that says FREE”).
- NAFTA: This is very important as one of the first steps in determining if goods qualify under NAFTA is to find the tariff classification for the product and to then check under the NAFTA Specific Rules of Origin to determine how the goods might qualify. A common misconception is that products will AUTOMATICALLY qualify if they are made in Canada, the U.S. or Mexico.
- Anti-Dumping Duty (ADD): If a government decides that they need to protect a domestic industry, they can impose an anti-dumping duty on specific imports. This is also driven by the harmonized tariff classification. Pay close attention to this area as anti-dumping duty rates are always very high – usually double or sometimes triple digit percentages. Click here for a full list of the Canadian imports subject to dumping duties.
- Exporting to countries other than the U.S. where the shipment value exceeds $2,000.00? You or your freight forwarder will be required to complete a B13A export document (or electronic equivalent), and you will need the eight digit harmonized system export code or the Canadian 10 digit import code for each product. Once again, export restrictions and permits governed by Foreign Affairs are driven by the tariff classification.
The above topics are the primary reasons for determining the correct tariff classification. In addition, we should also include the controls through other governmental agencies, such as the Canadian Food Inspection Agency, Free Trade Agreements with other countries, and also the effects on Canada’s trade statistics.
Remember – if your company’s name is indicated as the importer on any customs documents, you (not your customs broker) are looked upon as the responsible party to ensure all declarations are correct. You may be able to avoid any future problems by getting it right the first time!
To learn more about The Harmonized System Code (HS) Code:
- Read another one of our blog articles: A Better Understanding of H.S. Codes
- Attend an upcoming Harmonized System Tariff & Classification Workshop on November 8, 2012.
American Goods Returned Are Not Duty Free
American Goods Returned (AGR) also referred to as U.S. made goods returned (USGR) is a formal declaration for entering goods manufactured in the United States that have been previously exported and are now returning.
Do not assume that the return of goods to the United States will be without some difficulty. A common mistake that importers make when declaring U.S. goods is that they do not know where the products were manufactured. Just because the product was purchased in the U.S. it doesn’t necessarily mean it was manufactured in the United States.
Did you know U.S. goods returning to the United States are usually eligible for duty-free treatment? The provision 9801.00.10 in the Harmonized Tariff Schedule allows U.S. made products to return to the U.S. without being subject to duty and the Merchandise Processing Fee. However, the provision stipulates the goods cannot be advanced in value or the condition of the goods improved while abroad.
For example, say you are the owner of a helicopter manufactured in the USA. The helicopter has electrical problems and you send it to a repair shop in Canada. When the helicopter returns the value of the repairs may be subject to duty.
Another example would be goods purchased from the U.S. by a Canadian company. They received their shipment and the goods were refused by the buyer because they did not meet their product specifications. The goods can be returned to the U.S. duty free if the proper documentation can be supplied to U.S. customs.
The most common proof is a Manufacturer’s Affidavit. Like the name implies, this form is completed by the actual manufacturer of the goods. U.S. customs requires this for any shipments that are valued over $2000 and if the articles are not clearly marked with the name and address of the manufacturer.
The affidavit must state that the goods are a product of the USA. U.S. Customs requires the affidavit to be on the U.S. manufacturer’s letterhead and it must be signed by an employee from the U.S. manufacturers facility that has the authority to sign on behalf of the company. At some U.S. ports of entry, Customs will accept a NAFTA Certificate that is completed by the manufacturer.
Next time you get ready to ship U.S. goods remember it is not always as easy as it seems. Be sure to supply the proper paperwork to support your duty free return!
Leave us your questions or comments regarding American goods returning to the United States below or contact us at clientservices@pcbusa.com.
Correct Product Descriptions: Foundation for Import Accuracy
When you travel, it doesn”t matter which English speaking country you are in. You could be in Canada, Britain, Scotland, South Africa, Australia or New Zealand. Everybody might be referring to the same thing but everyone uses a different word or phrase. Terminology, language, dialect, regional slang, pronunciation — so many factors enter into the equation and influence the way we describe people, places and things.
The same concept often applies when a customs broker is trying to process a Customs clearance on behalf of their client. Through trade names, item numbers or industry jargon, the product description on the commercial or Canada Customs invoice makes sense to the shipper and consignee, but is either too vague or lacks further information for the customs broker. Probably the number one reason that your customs broker needs to contact you or the shipper is for further details about the product description.
Why is this important?
The main reason your customs broker needs this information is to identify the correct tariff classification for each item. For a quick read on the importance of the tariff classification, refer to our previous post.
In addition, every product line on the Canada Customs or commercial invoice needs to be classified, data entered and transmitted to Customs. Generally, all shipments containing less than 100 product lines must be transmitted electronically in order to request a Customs clearance from Canada Customs. Yes, you read correctly…the information must be transmitted and accepted by Customs before the shipment can physically enter Canada. As you can well imagine, the window in which to perform this function could be very small if a truck driver is quickly approaching the Canadian border.
Ultimately, the “Importer of Record” (generally the Canadian purchaser) is responsible for all trade data submitted to a Customs agency on their behalf and is also liable for any errors or omissions. Essentially, this could lead to fines, penalties and interest fees under the Administrative Monetary Penalty System if the goods are incorrectly identified or classified due to an unclear or vague product description.
Here’s a hot-off-the-press real life example. This morning I had a client call me as her shipment was held up with a courier. The problem was that the product description was listed as “wine” on the bill of lading. Turns out the goods are actually “wine stoppers” (which, incidentally, carry a much lower duty rate than alcohol!).
So what information is your customs broker looking for?
In order to cover all the possibilities I would have to give you a 100 page booklet as every chapter of the customs tariff requests specific information. To keep it to the basics, the key areas are:
- A clear literal description of the item (i.e. wooden chair with upholstered seat)
- The chief materials from which the item is made (i.e. wood, plastic, steel, rubber, etc. If you import garments, you’ll need the fabric content)
- The end use (if known) (i.e. used in the manufacture of __________)
Still frustrated? Attend our next Harmonized System Tariff & Classification Workshop and have our experts teach you how to properly classify products. Guess what you”ll learn first… it all starts with a detailed product description!
Still confused? Call Pacific Customs Brokers and we”ll discuss your customs requirements.