Your products' classifications will decide the amount of import duty you pay.
Calculating import duties, which is the importer's responsibility, typically needs you to classify the items you're importing. This classification must follow the guidelines of the U.S. Harmonized Tariff Schedule (HTS). The classifications of your products decide the amount of import duty you pay. Although it sounds very simple, the process of categorizing products is a complex procedure. If, for instance, you're planning to import a purebred dog for breeding, it's not that you'll find a heading called "Dogs." The HTS provides guidelines for import of purebred horses. Because dogs don't fit into that category, the rules provided under "Other live animals" governs their import." Classification, therefore, requires an ability to interpret the HTS guidelines accurately.
Instructions
1. Obtain product details. Make a list of the items you are importing from China. Request exact product descriptions from the exporter.
2. Study the HTS guidelines. The HTS, in brief, gives details of calculate import taxes for every possible item that's imported into the United States. Purchase a copy of the HTS from the Government Printing Office or access the website of the United States International Trade Commission. The HTS contains 22 sections and chapters under each section. Every chapter comes with notes regarding the method of classifying products mentioned in that chapter. Read and understand the notes thoroughly before proceeding further.
3. Classify items. Every item to be imported should bear a 10-digit HTS classification number. The first two digits refer to the chapter. When these are read in combination with the next two digits as a four-digit number, it refers to the heading for the article within the chapter. The concluding six digits indicate the subheadings. Study the headings and subheadings to find where your product fits in.
4. Calculate the import duty. Read the notes at the beginning of the chapter again to find out if your product is part of any special import scenario as specified for import from China. If so, check the special column in the Rate of Duty Column. If not, check the General or Column 1 in the Rates of Duty Column. Use the rates specified in this column to calculate the import duty.
5. Check if your calculation is right. Although the USITC maintains the HTS, the Bureau of Customs and Border Protection makes decisions regarding whether classification is accurate. If you have any doubts, have your calculations verified by this agency.
