We defer to experts for all kinds of things: maintaining our cars, fixing our computers, filing our taxes. It takes the guesswork out of these specialized jobs and gives us peace of mind that someone knowledgeable is taking care of us.
But, whether you are a big or small business, you’re also looking for ways to save money, particularly given today’s slowing economy. As such, it may make sense to take back control of some aspects of your business currently managed by brokers or other third parties. Is maintaining your
HS Classification database one of them?
Let’s consider the pros and cons of maintaining your own HS Classification database.
Pros:
- Initial cost savings, particularly if you already have in- house expertise
- If your database is static, the task of maintaining it is not onerous
- Familiarity with your products: You know your business best
- You have full control over the accuracy of the information
Cons:
- Large educational responsibilities and commitment to keep staff full informed and on top of changes.
- Greater potential for unexpected subsequent costs (penalties, duties, corrections), and impact on compliance history rating with CBSA – if HS classifications are inaccurate.
- Databases are most often evergreen, meaning new items are added all the time. In-house database managers will need to keep on top of changes and updates to remain compliant.
- You, the business owner, are ultimately responsible and accountable for providing correct information.
Do you know the rules of classification? Do you have access to all the tools of the trade and expertise that a
customs broker does?
Aside from the certainty that going with a professional provides, there are additional benefits to using a
Customs broker. They can be retained to perform compliance reviews of your information, and they have quick and easy access to other data applicable to your goods that are necessary for an accurate and compliant entry.
Make the choice that’s best for your business. We can help you decide.
Information provided by: Canadian Customs & Consulting Dept. - Cole International