Cole Blog

New Tariff. New Rulings.

Written by CDN Customs Consulting Dept. - Cole International | May 31, 2017 3:00:00 PM
 
The Harmonized Commodity Description and Coding System (HS) is the internationally recognized system for coding and describing products for trade. The HS was developed and is maintained by the World Customs Organization (WCO).
 
The Canadian Border Services Agency (CBSA)’s Customs Tariff is based on the HS and is updated regularly to keep pace with changes made to the HS and to incorporate input from the WCO, the Canadian Department of Finance and Statistics Canada
Importers and exporters of goods are required to ensure HS compliance and to update their product classifications to ensure the correct tariffs are assigned and paid.
 
On January 1, 2017, CBSA introduced the latest list of Customs Tariff classifications that must be incorporated into importers’ tariff considerations. This newest version encompassed thousands of changes to tariff classifications so chances are good the tariff classification number of one or more of your products has changed.
 
Review the Customs Tariff 2017 Concordance Table to determine if the classification of your goods is impacted.
 
Advance Rulings
 
Many importers make use of CBSA’s Advance Ruling process to expedite trade and provide certainty on the tariff classification of their products. Once granted, an Advance Ruling provides binding, written confirmation of the classification of a product.
 
With the new changes in the 2017 Tariff, importers will need to ensure any changes are incorporated to their product classifications – including products for which they’ve already secured an Advance Ruling. Because, unfortunately, having an existing ruling won’t help you if the classification of your goods has changed. CBSA requires you to write to request a new ruling for your goods.
 
You are responsible
 
If the tariff classification of your goods was impacted by the 2017 Custom Tariff changes, CBSA requires that you submit a request for an affirmation of the ruling to the CBSA office that issued it. The process is outlined here
 
If you have spent time and effort to obtain a favourable ruling, don’t risk losing it.
 
Contact our consulting department for help obtaining a new tariff ruling or requesting an affirmation of an existing ruling.
 
 
Information provided by: Canadian Consulting Dept. - Cole International