Why is HS classification such a risk area?

HS classifications are risky if you classify incorrectly, as you may be paying the wrong duty and tax on your products. This can result in a retrospective duty or tax bill for the back payment of all the goods you incorrectly classified. This can lead to substantial penalties and fines, and even cause your goods to be seized or destroyed.

An incorrect classification can also lead to overpayment of duty and tax, which has implications for your business’ cash flow. It is possible to make a retrospective claim for overpaid duties, but you must be able to fully back up your arguments for such a retrospective change and claim.

Tariff classification is a specialised skill that requires a broad knowledge base and experience. Not all importers or exporters necessarily have this expertise. At Sparkle Logistics, we have vast experience in shipping goods worldwide and declaring goods to customs agencies correctly is a key element of our services. The customs and trade compliance teams of Sparkle Logistics and our partners worldwide are up-to-date with all aspects of customs activity and we are efficient in HS classification, and are ready to support you with advice on how best to classify your products. Furthermore, we can identify where there may be risk in your classification and optimise your classifications, taking advantage of available benefits – such as legitimate re-classification and reduced duty rates – and duty suspensions.