As international trade continues to expand, so do the regulations that govern it. Customs authorities around the world are placing greater emphasis on the need for precise merchandise descriptions. In this article, we will help you understand why providing clear and specific descriptions for your shipments is essential for ensuring compliance with global customs regulations and avoiding potential delays.
Recent communications from customs authorities highlight a growing trend: vague merchandise descriptions can lead to complications in the import process. Terms such as “parts,” “daily necessities,” or “accessories” do not provide the clarity required by customs regulations. As countries tighten their customs enforcement, vague descriptions can result in supply chain disruptions.
For example, the U.S. Customs and Border Protection (CBP) implemented nationwide rejection of vague descriptions in Air Cargo Advance Screening (ACAS), effective 7 October 2024. This was to ensure complete and accurate descriptions of each item within a shipment, including what the item is, what it is made of, and what it is used for. One-word descriptions, jargon, or abbreviations should be strictly avoided.
Why Precision Matters
Providing precise descriptions for your shipments is crucial for several reasons:
| 1. |  | Regulatory Compliance: Customs authorities require specific details about the cargo being shipped to ensure compliance. This includes information about the materials used and the intended use of the goods. For example, instead of labeling an item as “toys,” a more precise description would be “children’s toys made of plastic.” |
| 2. | Efficient Processing: Clear descriptions facilitate quicker processing by customs officials, reducing the likelihood of delays. When shipments are clearly described, they can be processed more efficiently, ensuring timely delivery. | |
| 3. | Avoiding Rejections: With increasing scrutiny of shipments, vague descriptions may lead to automatic rejections. This not only disrupts the supply chain but can also incur additional costs for re-shipping or storage. | |
| 4. | Enhanced Customer Trust: Providing accurate descriptions builds trust with customers and partners, demonstrating a commitment to compliance and professionalism in trade practices, and decreasing the likelihood of customer frustration or dissatisfaction. | |
Understanding Harmonized Tariff Schedule (HTS) and Harmonized System (HS) Codes
Harmonized System (HS) and Harmonized Tariff Schedule (HTS) codes are essential classification systems that assist importers and exporters in ensuring accurate customs duties. HS codes are six-digit numbers used globally to classify and identify goods. In contrast, HTS codes are unique 10-digit numbers used by some countries, such as the United States, to calculate customs duties on imported goods. The first six digits of the HTS code correspond to the HS code, which allows for quick identification and calculation of applicable duties or taxes on shipped goods.
Combined, these two codes are internationally recognized, ensuring efficient content screening and accurate import customs duties worldwide. Making sure you use the correct HS and HTS codes helps avoid misclassification, facilitates trade compliance, and enables smoother trade operations.
Utilize DHL myGTS for Improved Compliance
To assist our customers in meeting these regulatory requirements, DHL offers the myGTS (my Global Trade Services) platform. This tool provides access to valuable resources and guidance on global trade compliance, including:
Customs Regulations: Stay informed about the latest customs regulations and requirements in various countries.
Accurate HS or HTS Codes: Simply search for HS or HTS codes using keywords or the code directory to get the correct classification for your shipments. For HTS codes in the U.S., you can also refer to the Harmonized Tariff Schedule of the United States.
Landed Cost Calculation: Estimate costs associated with your shipments, helping you make informed decisions.
By leveraging myGTS, you can enhance your understanding of customs requirements and improve the accuracy of your shipment descriptions.
Examples of Acceptable vs. Unacceptable Descriptions
Here are some examples of acceptable and unacceptable descriptions to help you navigate this requirement:
Unacceptable Descriptions | Acceptable Descriptions |
|---|---|
Toys | Children’s toys made of plastic |
Clothing | Women’s dresses made of 60% cotton and 40% polyester |
Technology parts | Electronic components for computers |
Kitchen tools | Kitchen utensils made of stainless steel |
For specific guidance on shipping to the U.S., you can view the full list of acceptable vs unacceptable cargo descriptions on the CBP website.
Ensure Compliance for Successful Shipping
As global customs regulations tighten, it is imperative for your business to review and refine your shipment descriptions. Providing precise and specific descriptions not only ensures compliance with customs regulations but also enhances the efficiency of the shipping process and builds trust within the trade community.
Join us in embracing this step towards a more efficient and compliant future for shipping!
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