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Importer saved 11.9% on Customs duties with Tariff Rate Correction

While most importers wonder why Customs Brokers ask so many questions about a particular product, part of the reason is to save you money.
A proper tariff classification can save you lots of money, and over time, those savings can add up. In a competitive marketplace, the slightest competitive advantage can make a huge difference.

Here is a prime example of an instance where a single word reduced the duty rate from 17.9% to 6%, thus saving the importer 11.9% in customs duties.

Most importers list general terms like "Nut Spread" on the invoice. Nut spread would normally fall under HTS# 2008.19.9090 at 17.9% duty rate.
In this instance, an ingredients list was provided and the word "Chocolate" made all the difference.

Chocolate Nut Spread is correctly classified under 1806.90.9090 at 6% duty rate

If the merchandise being imported cost $40000.00
At 17.9%, the customs duties would have been (40,000 x 17.9%) $7160.00
At the reduced duty rate of 6%, the new duty amount is $2400.00
A savings of $4760.00. At one shipment of equal value per month, that's a savings of $57120.00 per year.

An accurate and detailed description not only allows for correct tariff classification, but can also save you money in less customs duties at the time of entry filing as well as no additional customs duties a few months down the road when the entry finally liquidates.
Your Customs Broker is your best ally and liaison between government agencies and service providers.

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