electronics Classification

Reduced duties for consumer electronics.

I Company

2022

Electronics

The company’s incorrect HS codes caused high duties. Accurate reclassification reduced costs, improved customs clearance, ensured compliance, and boosted efficiency.

Analysis

Incorrect HS code classifications increased duty costs.

Our analysis revealed that nearly 30% of imported products were misclassified under incorrect HS codes, causing higher duty rates. The company’s product descriptions were inconsistent, and there was no standardized process for tariff classification, leading to frequent errors during customs declarations.

Proper documentation is critical in HS classification to ensure accuracy, compliance, and smooth customs clearance. Detailed product specifications, certifications, and supporting documents minimize misclassification risks, prevent delays or penalties, and facilitate trade benefits like FTA tariff reductions. Comprehensive preparation ensures regulatory adherence and establishes credibility with customs authorities.

Challenge

Misclassified imports led to higher duty payments and customs delays.

I Company’s consumer electronics imports were misclassified under high-duty HS codes, leading to excessive duty payments and customs clearance delays. Inconsistent product descriptions further complicated the classification process, increasing operational costs and compliance risks.

Solution

Reclassified products under accurate HS codes, reducing costs significantly.

A comprehensive review of HS codes was conducted, reclassifying products under appropriate tariff codes. Standardized templates for product descriptions were introduced to ensure consistency. Training sessions were provided to the company’s logistics team on proper classification procedures.

HS Code 8542.31.0000 refers to electrical machinery (Chapter 85), specifically electronic integrated circuits (Heading 42), processors and controllers (Sub-Heading 31), with no additional sub-classifications (0000).

Maintance

Scheduled audits and training maintained accurate tariff classifications.

Regular audits of tariff classifications were implemented to prevent future errors. The standardized process for product descriptions was periodically reviewed and updated to reflect changes in customs regulations. Over the next two years, duty payments decreased significantly, and customs clearance times improved.