Major changes to tariff classification in 2022: what importers need to know
Why the change?
The World Customs Organization updates the Harmonized Tariff Codes (HC) every five years. The last mass change was made in 2017.
Additionally, the CBSA, in cooperation with Statistics Canada and the Department of Finance, amends the Customs Tariff at least once a year on an as-needed basis.
What’s new in 2022?
Some of the major changes for 2022 are in the headings of:
- Glass fibres and articles thereof,
- Metal forming machinery,
- Flat panel display modules,
- Diagnostic kits used in health sciences,
- Addition of placebos and clinical trial kits,
- Dual-use goods in many areas of the tariff.
Why are these tariffs affected?
Technology often warrants tariff changes because so many new products are being made. Also, industry sometimes requests a change.
How does this impact importers?
Remember, tariff classification changes happen at least once per year. These changes can impact your tariff classifications on your goods.
When changes occur, it can affect existing rulings and provide opportunities for duty refunds.
What about Free Trade Agreements?
Free trade agreements (FTAs) are not updated to coincide with the changes to the Customs Tariff.
This creates confusion for exporters because the new tariff classification of their exported goods is not covered by the Free Trade Agreement’s rules of origin. A good trade consultant can assist you with this dilemma.
Want to make sure your goods are properly classified?
To make sure your goods aren’t being imported under the wrong tariff classification, we recommend you request a ruling. Or, hire a good trade consultant to go through your classifications and make sure they are current and correct.
Cole’s Consulting team is already up to speed with the new requirements—we’re happy to help you make the transition.
Tariff Classification. It's what we do.
