Business Briefs

3 Tariff Terms You Should Know

Drawback
Importers can get refunds on imported products if they don’t end up being sold in the US. These refunds, or drawbacks, are allowed for items that eventually get exported or destroyed. So, if you are importing a pallet of games and are shipping those games to other countries, check with U.S. Customs and Border Protection on how to collect your drawback.

Transshipment
Often times cargo is shipped to a location prior to its final destination. There are many legal reasons for this, like as a way to cut shipping costs. It can also be a way to avoid tariffs by changing the country of origin. If, for example, a company is shipping goods to Vietnam to change the country of origin. This type of transshipment is illegal and punishable by fines and jail time in the US.

Harmonized Commodity Description and Coding System
More than 177 countries use the Harmonized System or HS to categorize commodity groups. Each group is identified by a six digit code. These codes are used by the countries to track international trade statistics and assign tariffs. The HS code for board games is included under: 9504.90.60. “Chess, checkers, backgammon, darts and o/table and parlor games played on boards of a special design and parts thereof; poker chips and dice.”

Show More

Related Articles

Back to top button
Close
Close