The Advantages of Having Harmonized Tariff Schedules in Place
Is the idea of starting an international business in your mind? The business of international trade is another very lucrative venture. After exploiting all local market opportunities you will get an opportunity to reap more from the international markets. Taking advantage of economic weaknesses in other countries, will see you getting rich quickly.
Knowledge about the harmonized tariff schedules will save your business from being weakened by huge tariffs and taxes, most of which are not necessary and you will find unwelcome. The tariff schedules are there for among other purposes, to collect tariffs and taxes, to gather international business statistics and monitor goods that are controlled. Without the correct coding of your goods, risks are high that, other than attracting huge penalties and fines, you will cause delays in the movement of the commodities. The only way to avoid unnecessary costs, some of which are very heavy, and inconveniences in your business is by complying with those regulations to do with harmonization of tariff schedule. With knowledge and practice on proper classification coding, your business will definitely excel and it will be a big boost to the security of your compliance records.
First, you will be able to fulfil your legal responsibility. Failure to comply with the requirement will easily lead to delays in the shipment of your goods, intensification of inspection, attraction of fines and other penalties which you had unbudgeted for.
Secondly, by observing the classification regulations, you will save a lot of capital for your business. By all standards, you will be doing your business great favor by correctly coding your goods before leaving their origins and work closely with your custom agents and authorities. As such, any failure to properly classify your goods and code them, of which is your duty to do so, is likely to cause huge amounts of losses. The sole responsibility of ensuring that you goods for international trade are properly classified and coded rests on you the merchandise owner, as you are at liberty to get assisted by your custom brokers.
There are certain special privileges which come with knowing all about proper classification and coding. The provisions mostly come about depending of the purpose for the goods are being imported and certificates from the source. With knowledge of how the rate schedules are harmonized will save your capital a great deal.
In addition you will be in a position of protecting records for compliance, besides safeguarding against outgoing of capital in the form of taxes and duties. You will enhance the smooth and fast movement of your merchandise.
As an international trader, you can hugely protect your business against unnecessary penalties and thus protect your capital outlay, by complying with the harmonized tariff schedules.
Study: My Understanding of Codes