Basic Principles of Tariff Classification

Classification is the name for the system of rules an importer must use in order to declare the nature of imported merchandise to U.S. Customs and Border Protection. Quotas and duty rates are applied based on classification. Valuation is the name for the system of rules an importer must use in order to declare the value of imported merchandise to U.S. Customs and Border Protection. The amount of duty paid is tied directly to valuation. Importers must master both of these complex systems in order to run their businesses successfully and avoid costly damages.