Are your products classified for international trade? Use PPC to get started.
Before selling your goods overseas, a necessary first step is to classify your goods by assigning them Harmonized System (HS) codes. HS codes allow global customs authorities to recognize your goods and apply the correct import duties and taxes. The first 6-digits of the HS code are known as the HS6 and are universally recognized by customs authorities in over 200 countries. Additionally, you can extend the HS6 to destination country specific 10–14-digits, called the Fully Qualified (FQ) codes, which makes your goods recognized by those specific importing countries.
HS6 means your import duties & taxes are calculated on a global “average” basis. FQ codes means the duties & taxes are specifically calculated for the importing country. As a result, FQ codes provides a more accurate duty & tax calculation, usually greater than 98% accuracy, than just using an HS6 code, which is around 85% accurate.
You mostly only ever need to classify your goods once in their life-times, so putting in the effort to classify your goods to either HS6 or FQ levels is a one-time effort. Additionally, you only need to classify the “parent” products, i.e., NOT the variants, so sizes, colors etc., do NOT need to be classified because they inherit the classification of the parent product.
When getting your goods classified its best to get expert licensed customs brokers, with decades of experience, to classify your goods accurately, considering any contextual aspects in the classification (i.e., manufacturing process), which sole AI (artificial intelligent) classification solutions lack. After all, you don’t want the wrong classification impacting the results of your expected duties and taxes calculation.
EdgeTariff’s Product Pre-Classification (PPC) tool, lets you get your products classified (by expert humans not just AI) to both the HS6 and FQ levels. This means you get class-leading product classification, which accurately drives the expected duty & tax calculations for showing the total landed cost on your online store’s check-out, B2B quotations and invoices.