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Fax: +1 (770)688-1229
2.5% or free of duty? It can represent a large sum if the value is high and or the volume of entries is strong. But picking harmonized tariff codes based on duty rates is not only incorrect, it is against the laws that govern trade. The HTSUS (harmonized tariff schedule of the United States) is not a guide, it is a legal document backed with “teeth.” Failing to effectively classify commodities can lead to CF28’s (requests for information), CF29’s (notices of action often increasing the duty liabilities to the importer), focused assessments and audits. All of these are efficiency killers in today’s modern fast paced supply chain environment.
CF28’s take time and resources to provide appropriate answers to CBP. CF29’s take time and resources to review, rebut and sometimes to apply subsequent payments to an entry that may already be completed and closed in the books. Focused assessments and audits are a whole new level of resource taxing for an importer compared to CF28’s and 29’s.
So what can importers do?
First of all, importers should begin classifying according to the General Rules of Interpretation codified in the HTSUS. These rules provide the framework to follow a process to obtain correct HTS codes.
Second, importers should assess they database of commodities and determine items which need to be re-assessed.
Finally, an assessment of CF28’s and CF29’s should be examined. How many have been received in the past 12 months? How many have been answered? What items were affected by the requests? Have those items been updated inside the internal databases of the importer?
JAS Forwarding USA Inc. Compliance Team is experienced in all of these questions. We have solved these problems and can help. Contact us today and we will assist to analyze risk in this arena as well as others!
On February 11, 2025, the President issued a proclamation regarding the importation of steel and aluminum articles, increasing tariff rates to 25% from all countries. As part of that proclamation, it was announced that there would be expanded 25% tariffs to include key downstream products (derivatives) for both steel and aluminum. The Annex containing those products has been drafted and is expected to be officially published in the Federal Register on February 18, 2025.
Key Points:
• There are 167 new codes for steel downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 4 different chapters of the HTSUS).
• There are 123 new codes for aluminum downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 11 different chapters of the HTSUS).
To read the draft Federal Register, and access our Excel listing of HTS affected, click the links below:
For February, we are highlighting Jacquelyn Bakker, our CHB Manager in the JAS Chicago office. Jacqulyn started her career in the industry in 2012 in an accounting role before moving into the brokerage side in 2014. In her words, that’s when she “found my niche.” Jacquelyn joined JAS in 2018. After being named as the Brokerage Supervisor, Jacquelyn decided to take on the “daunting task” of obtaining her broker’s license. After 3 months of studying, Jacquelyn was able to pass on the first try! Jacquelyn manages a team of 6 entry writers in our Chicago branch and CHB manager. Jacquelyn is detail oriented and attentive to the needs of her clients internally and externally!
Jacquelyn has a 19-year old daughter, loving fiance and 2 dogs at home. She enjoys family time BBQing in the summer, taking the dogs for longs walks, playing Pokemon Go with family and seeing movies in the theater.
Jacquelyn is yet another great example that People Make the Difference!
CBP is leading global efforts in combating forced labor by imposing import bans on goods produced with forced labor. This has inspired international action, including the European Union’s adoption of similar measures and the inclusion of forced labor prohibitions in the USMCA. CBP’s actions have also driven labor reforms, notably in Malaysia, which launched a National Action Plan on Forced Labor and ratified an international protocol to combat forced labor. These advancements demonstrate CBP’s significant influence in shaping global supply chain accountability and driving positive change.
Read more about it by checking out the link below:
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