HTS / Customs Valuation



Classification, and, when ad valorem rates of duty (duty rates based on value of merchandise) are applicable, appraisement, are the two most important factors affecting dutiable status.

Classification and valuation, (regardless of the type of duty used) must be provided by commercial importers when an entry is filed. (In addition, classifications under the statistical suffixes of the tariff schedules must also be furnished even though this information is not pertinent to dutiable status). Classification is initially the responsibility of an importer, customs broker or other person preparing the entry papers.

HTS covers various products. In Sections I through XXI, products are classifiable (1) under items or descriptions which name them, known as an eo nomine provision; (2) under provisions of general description; (3) under provisions which identify them by component material; or (4) under provisions which encompass merchandise in accordance with its actual or principal use. When two or more provisions seem to cover the same merchandise, the prevailing provision is determined in accordance with the legal notes and the General Rules of Interpretation for the tariff schedule.

Also applicable are tariff classification principles contained in administrative precedents or in the case law of the U.S. Court of International Trade (formerly the U.S. Customs Court) or the U.S. Court of Appeals for the Federal Circuit (formerly the U.S. Court of Customs and Patent Appeals). (See link below and attachment)…