How the Government classifies goods
Taxes can be imposed on any goods that are moved across a political boundary, and local customs authorities enforce their collection. The calculation of duties depends on the assessable value of a dutiable shipment. For the purpose of determining this estimate, dutiable goods in the shipment are given a classification code (up to ten digits) known as a Harmonized Tariff Schedule (HTS) code.
Goods are not classified by their use, stage of manufacture or place of origin, but rather by the category under which they fall. Some examples of these are:
- Mineral products
- Plastics and rubber
- Raw hides, skins, leathers
- Wood and straw
- Textile
- Stone, plaster and cement
When determining a classification code, commodity descriptions might appear to be similar, but they can have significantly different rates of duty. The more information you have about your product, the easier it will be to find the proper code and help your shipment get through customs smoothly. Customs might apply variable duties after initial entry – when estimated duties were paid or when an entry was audited – causing a change in the duty owed.
Obtain a commodity classification code using DHL My Global Trade Services.
