Customs Binding Tariff and Duty Increase

Customs Binding Tariff Information or Tariff Rulings can have a substantial impact on duty rates. This is why it is important to monitor tariff decisions. This week we have an excellent example from the USA to illustrate how Customs decisions can dramatically affect the duty rate.

The U.S. Customs and Border Protection (CBP) issued a ruling on child car seat cushions.

Before the ruling, the child car seat cushions were classified as part of a car seat (HS 940190) with a duty rate of 0%.

Under the CBP ruling the child car seat cushions are classified as cushions (HS 940490) with a duty rate of 6%.

This ruling come into force from March 13, 2022.

Commodity codes change regularly. Annually with a general update that usually comes into force in January. Throughout the year following the decisions of court cases or change in rulings. Each reclassification can affect duty rates.

Source: Customs Bulletin and Decision, VOL. 56, NO. 1, “Revocation of Three Ruling Letters and Revocation of Treatment Relating to the Tariff Classification of Child Car Seat Cushions” Page 40

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