Correctly Classifying Imported Merchandise

It is by law the importer—and not Customs—that is responsible for correctly classifying imported merchandise. You may be paying more or less duties than you should be paying. In most cases, Customs is not bound to accept any classification under which merchandise previously cleared for prospective shipments and has the right to reclassify and assess additional duties on prior shipments. Neither are you bound by the classifications you previously used and as your Customs lawyer, we seek favorable reclassifications both retroactively and prospectively.

What We Do

• Review a company’s product line, determine the most favorable tariff classification and duty rate
• Give you confidence in determining your landed, duty-paid costs.
• Determine the existence of and resolve any tariff classification issues.
• Suggest minor modifications in product specifications that can result in enormous duty savings.
• Obtain binding rulings from Customs covering your specific commodity.
• Commence litigation to recover excess duties paid if the matter cannot be resolved administratively.
• Save duties resulting form reclassifications on a going forward basis
• Recover excess duties paid going back almost a year and a half from date of entry.
• Should clear misclassifications have resulted in duty underpayments, prepare a duty tender in a manner that avoids exposure to penalties.

More Details

The United States and over 80 other countries, including all major trading companies, adopted the same “Harmonized Tariff” in 1984. This does not mean that the duty rates are the same, or that all countries give the same interpretation to the same tariff provision. The Harmonized Tariff is further broken down by each country as it sees fit.

The Harmonized Tariff is an immense document that includes its own complex rules of interpretation. Literally thousands of disputes have arisen over the years as to the correct tariff classification of a commodity. Resolution is important not only because classification dictates duty rates–which vary widely. It also determines whether a product is subject to such things as a quota, an import prohibition, or to antidumping or countervailing duties.

Many importers rely on past practice to determine classification, or on their brokers, who in turn generally rely on the opinion of local Customs officials. The opinion of local officials does not have to be accepted--either on review by Customs, or by the importer-- and contesting such determinations can be done administratively at relatively insignificant cost. If the economics warrant and Customs cannot be convinced, the matter may be litigated in the Court of International Trade. There is a significant body of precedent—published administrative rulings as well as court cases, accessible to us as your Customs lawyer—which can be used in order to determine the most favorable classifications for your products and convince Customs or if necessary the Court that such classifications are proper.

Contact Us for More Information

You are welcome to call us to review any area of concern. Contact Stephen M. Zelman, Esq., at 1+ 212.245.6100 for a telephone consultation, with no obligation for any fee. E-mail at stephenzelman@gmail.com.