US Tariff & Description of Goods

by Wayto Singh waytosingh Goods traded to & from the U.S. have to be classified as per tariff schedule to avoid any obstructing penalties in the trade. But when it comes to consider literal meaning of something, one word can have more than one meaning. The same applies to the classification process of goods as per U.S. custom regulations.  The way you have named your product should follow a convention with which interpretation can be made easier. In that sense, the name & the headings used to identify a product should be well considered in terms of language & description. It should be kept in mind that description of goods can be interpreted in more than one way. So, for better accuracy & clarified description, certain aspects should be considered more precisely. These are given as follows:

Language Specification:  General description of goods is where the problem arises. So, the best thing to be done is to use product specific language. The heading to be used to describe the product should be product specific & all the general terms should not be included.

Compound Products: When the goods to be traded is not a single material, but a composite of two, three or even more constituents, US tariff uses Essential character coding with which goods are to be classified. The basis or the reason of purchase is then becomes the central part of the goods classification. A retail set which is a group of components traded as commodities must qualify by either having two or more components of different specifications or a common utility. It can also be packed for sale to be considered a retail set.

Higher Number of Essential character: In case of composite goods, essential character method or code is used to interpret them. But when there is more than one essential character, US custom regulations say that the feature which is given in the tariff schedule & appears later as per numerical consideration should serve for the interpretation.

Unidentifiable Goods as per Tariff Schedule: If the goods to be traded are not listed in the US tariff schedule, the description should present them as related to the one which is listed in the schedule & is highly similar to it.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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