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.
Some of the major changes for 2022 are in the headings of:
Technology often warrants tariff changes because so many new products are being made. Also, industry sometimes requests a change.
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.
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.
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.