Category Archives: classification

WCO accepts 2022 Edition of the Harmonized System.

January 13, 2020 By in classification, Customs Lawyer, Uncategorized, WCO Tags: , , , , , , , , , , , Leave a comment

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Looking forward to 2022, the World Customs Organization has already accepted the 2022 Edition of the Harmonized System ready to take effect on January 1, 2022.

Known as “HS 2022”, the seventh edition of the Harmonized System (HS) will be the latest revision to the uniform classifying of goods traded internationally around the globe.

As you are aware, the HS number is frequently referred to for Customs tariffs and used to track international trade statistics among the over 200+ economies actively participating in international commerce.

Upcoming changes include:

  1. e-waste product class
  2. new provisions for various novelty tobacco and nicotine products
  3. unmanned aerial vehicles (UAV’s) and drones will have their own specific provision instead of being grouped as “aircraft”
  4. smart phones will also receive their own subheading instead of being listed as “multifunctional devices”
  5. changes to subheadings for glass fibers and articles there of under heading 70.19
  6. changes to subheadings for metal forming machinery under heading 84.62 to reflect changing technologies

and many more changes. The WCO has not indicated all changes but will publish their “Recommendation” soon for a further introduction of upcoming changes.

If you have any questions regarding classification or want to be sure your goods are being entered correctly, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Importer pays $3+ million civil penalty to Customs.

November 20, 2019 By in classification, Customs Lawyer, Import, Uncategorized Tags: , , , , , , Leave a comment
round mirror

Photo by Ethan Sees on Pexels.com

According to an U.S. Customs and Border Protection media release, a company named Satisloh paid $3,320,425 for customs violations.

Satisloh imported machinery used to produce optical lenses but was hit with penalties for violation §19 U.S.C. 1592. Section 1592 allows Customs to issue penalties against importers who enter goods into the US by “false statements” or “omissions”.

We see many importers violate section 1592 because a false statement or omission can occur when describing a good for import, classifying a good by product number (HTSUS number) or providing false information on entry paperwork.

After a violation of section 1592, customs may issue a civil penalty, from there, the importer of record can try to submit an offer in compromise to customs to settle any claims. In this instance, Satisloh settled with Customs for $3,320,425.

If you have received a penalty notice, or notice of seizure or any other Customs action or Form. Contact experienced customs attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Passenger van or cargo van? That is the question (well, for Ford at least).

March 12, 2019 By in classification, Ford, tariff engineering, Uncategorized Tags: , , , , Leave a comment

red ford van

Photo by Pixabay on Pexels.com

A current case in federal court is attempting to address when or if a passenger van is actually a cargo van.

The case involves Ford Motor Company and their imports of passenger vans that removed a row of seats and sold the vehicles as cargo vans. Cargo vans were levied a duty of 25%, whereas their passenger van counterparts were only taxes 2.5%. Specifically, Ford imported “passenger vans” into the US from Turkey. After they cleared customs, the second row of seats were removed, windows blocked and holes on the floorboard for the seats were covered.

In 2017, the Court of International Trade ruled in Ford’s favor, but the government has appealed and the U.S. Court of Appeals for the Federal Circuit heard oral arguments yesterday (Monday 11, 2019). Many are watching the ruling as this may impact what strategies companies implement when “tariff engineering” imports to avoid higher duty amounts.

Tariff engineering and finding alternate classifications under the Harmonized Tariff Schedule of the US (HTSUS) are common ways importers try to lower their duty amounts.

The Ford argument is the goods should be classified as they are imported and subsequent altering does not matter. However, the government claims Ford’s wording of the vehicle is “for the transport of persons” instead of goods, ie is a cargo van.

Will update as soon as a decision is made.

If you are interested in how your company can “tariff engineer” goods or want to discuss alternative classifications for your goods, contact experienced trade attorney David Hsu at 832-896-6288 or email David’s catchall email: attorney.dave@yahoo.com (will be sent to David’s dh@gjatradelaw.com) email.

General Tips for New Importers.

January 14, 2019 By in classification, compliance, Uncategorized Tags: , , , Leave a comment
cargo containers trailer lot

Photo by Frans Van Heerden on Pexels.com

Importing anything into the US is a trap for the unweary and U.S. Customs and Border Protection (CBP or “Customs”) does not accept “I didn’t know that” as a valid excuse. CBP requires all importers and exporters to be aware of the law before they import or export and as the old saying goes, “ignorance of the law is not an excuse”.

Here are a few tips –
1. You do not need an “import license” to import into the US.
2. You may need a license, certification or permit from other Federal agencies depending on what you want to import.
3. You need an Importer of Record number, typically your IRS business registration number.
4. If you don’t have an IRS business number, you can apply for a number from CBP through Form 5106 (after the shutdown).
5. Consult the Harmonized Tariff Schedule to see how your merchandise will be classified when entering the US.
6. You can get a ruling prior to an importation of merchandise through CBP to ensure proper classifcation and rate of duty.
7. Seek out the assistance of a Customs Broker licensed by CBP. You can find a list of Customs Brokers at your port through the CBP.gov website.

The seven tips above are just the tip of the iceberg of what CBP will require an importer to know. Feel free to give us a call before you begin importing – we’re here to help. Call David Hsu at 832-896-6288 or email at attorney.dave@yahoo.com.