Trade classification and origin is a series of requirements that must be met to clear customs and transport goods around the world. In order to bring goods into a foreign country, the owner of the goods must disclose relevant customs data and pay any required tariffs or duties. Examples of required customs clearance information include:
- Harmonized tariff schedule codes.
- Country of origin certificates.
- Export control classification numbers (ECCN) and licenses.
View our video to learn more about trade classification and origin.
Who Is Impacted by Trade Classification & Origin Rules?
All companies that ship internationally are impacted by trade classification and origin rules, and must gather the appropriate trade compliance information and complete the proper filings to successfully manage customs. The organization is responsible for gathering the data, ensuring it is consistent and accurate, and making product certifications available.
Unlocking Value Through Trade Classification & Origin
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How Do Companies Ensure Compliance?
Companies can ensure compliance with two key pieces of supplier data: a Certificate of Origin, which is required to identify the origin of goods, calculate tariff fees and meet labeling requirements; and a Harmonized System (HS) or Harmonized Tariff Schedule (HTS) code to classify data and ensure its consistency between parties.
A variety of penalties could be imposed for failure to meet trade classification and origin requirements, notably:
- Seizure and/or destruction of products.
- Fines.
- More frequent customs audits.
- Loss of import and export privileges, and/or market access.
How Can Assent Help My Company?
Assent’s Trade Classification and Origin Module helps companies manage their supply chain data , including:
- Customs codes and part-level country of origin declarations.
- Supporting documents such as country of origin certificates.
- Trade agreement-specific data from the United States-Mexico-Canada Agreement (USMCA), Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and other free-trade agreements.
