A Global HTS Solution

The World Customs Organization is represented by 183 customs administrations and represents 98% of the world’s trade. When goods are shipped internationally, they must be classified for customs purposes using a Harmonized Tariff Schedule Number (HTS). Each separate product is assigned a classification code and amongst other things, the HTS number is used to determine the applicable duty rates. 

One of Allyn International’s core competencies is HTS classification, with services offered on a local or global level. Regardless of country of import, Allyn can provide correct HTS number(s) for your products to ensure compliance with applicable regulations.  

Why is having the correct HTS important?

Correct HTS classification is important because it determines the ad valorem duty rate for all items being imported. If the wrong code is applied, incorrect duties could be paid. As a result, incorrect classification and duties can lead to increased costs in the form of interest and penalties. Due to the current trade environment and escalating tariffs, having the correct HTS is critical, especially when goods are coming from China.

What are some issues faced by companies?

Providing the correct HTS code requires specific knowledge of the form and function of individual items. Determining the correct HTS can be tricky at times and even an experienced person can spend a lot of time hunting down specific information required to properly classify items. 

The HTS classification process requires knowledge of the General Rules of Interpretation and experience dealing with the HTS format. While the HTS for most countries is harmonized out to the 6th digit, any digits after the 6th will differ from country to country. 

Many multi-national corporations have issues with consistency of classifications across the globe. If the classification of items isn’t centralized within an organization, each location could be interpreting the regulations, specifications, or tariff differently leading to the same parts being classified in different chapters and headings. 

Another issue is the justification of all classifications as well as the recordkeeping of pertinent classification info.  An importer should be able to advise why a part was classified as such and should have records to support the classification. 

Allyn’s Experience

Allyn International has been handling HTS classification for various industries for over 25 years. We have licensed customs brokers on staff who have the knowledge and experience to help with your classification needs. 

Allyn can provide the HTS for any type of product and we have specific expertise in the following industries: electronics, semiconductor, automotive, textile, medical device, drilling and mining, oil and gas, power generation, chemicals and coatings, computing, telecommunications, furniture, jewelry and others. 

Allyn will provide the HTS for any country and we have experience in all regions of the globe. We have offices strategically located in North America, Europe, Asia and the Middle East along with expertise in Latin America, Russia and Africa. 

Efficiency and Performance

Allyn’s proprietary software system CIMS™, allows for an audit trail on each classification that will justify the classification chosen and store any pertinent emails, documents, specs or drawings. The CIMS™ system affords our clients much needed flexibility, allowing them to choose specific fields for completion. CIMS™ also connects with any number of software platforms, enabling Allyn’s classifications to feed directly into our client’s systems. 

CIMS™ can also feed HTS classification directly to your customs broker, and as the platform is online, all classification information and documentation is accessible by the via the internet. 

Using Allyn will help you reduce your turn around time on HTS classifications, greatly increasing productivity. 

Compliance and Consistency

Using Allyn as a provider for HTS classification demonstrates that your company is using reasonable care, and will ensure that consistency, structure and diligence will be used for all classifications.

If you have different locations providing HTS numbers for different regions there is always the chance that there will be a gap between how items are classified.   Using Allyn on a global level will close that gap. 

All work will be overseen by a licensed customs broker and our service will be curtailed to meet each customer’s specific needs. 

Conclusion

Correct classification is at the very foundation of having compliant imports, globally. We realize that not all companies have the personnel with the experience or the availability to oversee the correct classification of goods.  So, whether it be for a project, like the one-time classification of a parts list, or for ongoing classification support. Allyn can provide your company a best in class solution for a reasonable price.

About Allyn

Incorporated in 1992, Allyn is a privately held professional services firm that employs over 400 personnel in 20 plus countries.  Aside from Global Trade Compliance Allyn provides our clients services in logistics management, supply chain consulting and tax management. 

Allyn’s mission is “Providing exceptional services for the global marketplace, enabling our customers to succeed by focusing on their core business, while inspiring our employees to achieve their full potential”. If you would like more information on this or any other Global Trade Compliance matter please contact Allyn at Sales@allynintl.com