Chemicals (and General) Classification Tips Customs Broker ...

Chemicals (and General) Classification Tips Customs Broker Exam Prep

by: Deb Stern

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KEY TO TARIFF CLASSIFICATION

The key to tariff classification is having all material information about the product in advance of importation to yield:

? Defined costs ? Predictability ? Consistency ? Efficiency ? Reasonable Care

And having knowledgeable staff and outside experts to

make the determinations, esp. for tough calls

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HTSUS HEIRARCHY ? CHEMICAL EXAMPLE

HEADING SUBHEADINGS INT'L: 6-digit US ONLY: below 6 8 -digit provides duty rate, SPI 10 -digit US trade stats (US Census)

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TARIFF TERMS IN GENERAL

? Seek out all information necessary to fully classify an article by reviewing all of the requirements of the provisions under consideration, including the subheadings.

? Heading/subheading text sets forth tariff terms that may be defined in context, by legal notes, or otherwise.

? Be mindful of the requirements in the text itself: e.g., "other than... or "sets or assortments of gaskets and similar joints, dissimilar in composition, put up in pouches, envelopes or similar packings" (8424).

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TARIFF TERMS IN GENERAL

? A tariff term may be defined in the HTSUS as a description, a test, an inclusion or exclusion. This is important for the customs brokers exam!

? Tariff terms may have different meanings in industry than in the HTSUS, but where no definition is provided, common and commercial meaning apply. This doesn't really matter for the customs broker exam!

? Tariff definitions or interpretations come from CBP Rulings and Decisions and Federal Court Cases. This doesn't really matter for the customs broker exam!

? At a minimum, a classifier must know the material composition, features and functions or test principle of any imported article to determine its classification. This doesn't really matter for the customs broker exam - the question will give you the information you need (and some you don't)

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CHEMICAL CLASSIFICATION QUESTIONS

? Don't be afraid of the chemistry terms!

? Take a breath, read the question carefully, and have confidence that you will probably know more than everyone else taking it!

? Review the provisions for each of the answers including each applicable heading and subheading.

? You can usually ignore any answer in Ch 28 or 29 if the fact pattern says anything about a mixture. (Why? Chapter Note 1...)

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SEPARATE CHEMICALLY DEFINED...CHS. 28-29

Allowable Additions per Note 1 to each Chapter

? Impurities*

? Water

? Solvents, if solution 1) constitutes a normal and necessary method of putting up these products 2) adopted solely for reasons of safety or for transport and 3) does not render the product suitable only for specific use

? Stabilizer (including an anticaking agent) necessary for preservation or transport

? Antidusting agent or coloring substance to facilitate identification or for safety reasons (and doesn't render product suitable for specific use)

Just about anything else added to the chemical makes a mixture = eliminate Ch. 28-29 answers.

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