Is harmonized system code really necessary? If so, when?

lud-4367
Community Member

I don't ship to us often. It's usually 5 or 6 times a year, and when I created shipping labels for us shipping from canada post online, I never input harmonized system code ever. I actually didn't even know it was there to input until today. lol I've found it out when I was creating a shipping label with ebay since it was offering a cheaper rate. "HS tariff code" was in the custom form right next to weight. At first I didn't input and just printed the label, but I decided to write the code on the label with my pen since I haven't shipped parcels with canada post more than a year. So my question is have I been just lucky? Or is it because those items I shipped to us are cheap and small? Also When do "they" actually check HS tariff code? Thanks in advance. 

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Is harmonized system code really necessary? If so, when?

I have not used HS codes for years and my USA packages arrive at their destination without issue>All my USA bound packages are shipped Tracked Packet, even those that are very low value(less than $10.00). I no longer ship anything to the USA without tracking...

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Is harmonized system code really necessary? If so, when?

byto253
Community Member

If in item is over $800 US then I would put an HS code on it.  Under $800 is tariff free and I don't put it on and there have been no issues.

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Is harmonized system code really necessary? If so, when?


@lud-4367 wrote:

I don't ship to us often. It's usually 5 or 6 times a year, and when I created shipping labels for us shipping from canada post online, I never input harmonized system code ever. I actually didn't even know it was there to input until today. lol I've found it out when I was creating a shipping label with ebay since it was offering a cheaper rate. "HS tariff code" was in the custom form right next to weight. At first I didn't input and just printed the label, but I decided to write the code on the label with my pen since I haven't shipped parcels with canada post more than a year. So my question is have I been just lucky? Or is it because those items I shipped to us are cheap and small? Also When do "they" actually check HS tariff code? Thanks in advance. 


For some shipping systems HS codes in the correct format are required. It takes a minute or 2 extra so have NEVER considered a big annoyance. This is how google expresses its importance.

 

a)It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics. The HS is administrated by the World Customs Organization (WCO) and is updated every five years.

 

b)While it is not required, using Harmonized Codes for your international shipments will: Help your packages move through customs more quickly. Help to ensure correct taxation on your exported products. Help to minimize the chances of loss of your products.Mar 16, 2023

 

c)What happens if you use the wrong HS code?
You could be creating serious problems in the future by not correctly classifying products covered by a quota. The second possibility: Failure to use the correct code could result in the shipment being delayed until it is correctly classified. The repercussions don't end there and can extend to your customer.
 
From a customs perspective they appreciate when you take the effort even if it is a low valued item even if you don't get it exactly perfectly correct. Saves them from stopping to do so.
 
-Lotz
 
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Is harmonized system code really necessary? If so, when?

It's an international system intended to speed up customs processing.

I keep a list of my dozen most used codes in the back of my day book and use about four of them maybe once a week.

 

When I print Tracked Parcel labels for the USA the label will not complete without the HS number.

 

I gather it has been available for years as a voluntary thing but as computerization continues it is becoming a requirement.

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Is harmonized system code really necessary? If so, when?


@reallynicestamps wrote:

It's an international system intended to speed up customs processing.

I keep a list of my dozen most used codes in the back of my day book and use about four of them maybe once a week.

 

When I print Tracked Parcel labels for the USA the label will not complete without the HS number.

 

I gather it has been available for years as a voluntary thing but as computerization continues it is becoming a requirement.


From a business/courier/ltl and large shipments perspective its a mandatory part of the customs paperwork. Kinda like putting an address on the box of where it is going to.

Message 6 of 12
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Is harmonized system code really necessary? If so, when?

It's not required by Canada Post (yet) but it is highly recommended that you include one as it greatly helps to expedite items through customs.

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Is harmonized system code really necessary? If so, when?

chicweb
Community Member

I personnally only use eBay shipping label. This is a mandatory field. If it helps the process to go faster, I'm all for it and I would add it even if optional.

 

The goal is to get the package into the customer's hands as quick and secure as possible.

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Is harmonized system code really necessary? If so, when?


@byto253 wrote:

If in item is over $800 US then I would put an HS code on it.  Under $800 is tariff free and I don't put it on and there have been no issues.


Just to make sure, Would that be the final sold price of an item? Or Order total (item subtotal + shipping + sales tax)?  Or Order earnings (minus transaction fees and shipping cost)?

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Is harmonized system code really necessary? If so, when?

I only started using it recently. I never had a problem sending thousands of packages previously without it. I print almost all my labels at home on eBay or Snap Ship. I drop 99 percent of my packages in a street mail box. With that in mind, I have never had a cashier at a Canada Post outlet complain or instruct me to provide an HS Code.

 

I started using it because for my specific items, it is easy enough to use, so why not. I only need to know about 5 or 6 HS Codes for what I sell on eBay. It is easy enough to maintain a small list beside my computer. Here is a link to Canada Post's lookup tool: https://www.canadapost-postescanada.ca/information/app/wtz/business/findHsCode?execution=e2s1

 

Some items are very easy to find, like 'action figure'. For some items, it is exceedingly complicated to find because it isn't written in common English that your average person is going to understand without some trial and error. For example, if I write DVD movie, the first two choices are:


1-photographic or cinematographic media and material

2-other manufactured article

 

If you choose 1, it is actually referring to physical film stock. You're prompted to claim whether it is 35mm.

 

Then if you choose 2, it asks whether you're referring to a 'digital versatile disc'. I could see a random person getting confused because they don't know whether a DVD Movie is a digital versatile disc. Most people think it's a digital video disc. Then, they will be worried that US customs is going to bust through their door because that copy of Stepbrothers they sold for $1.99 Canadian to someone in Alabama didn't use the correct HS Code.

 

While it isn't that complicated, not everybody selling online is a full time seller, or incredibly well versed in what they sell. There are a lot of sellers who sell one-off items they pick up at garage sales or thrift stores. 

 

One thing that eBay could do is keep a link to common HS Codes and have a clickable button by the HS code input. Sports Trading Card, DVD Movie, T-shirt, Hockey Jersey, Music CD, etc. 

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Is harmonized system code really necessary? If so, when?

Selling price is the value for customs.  Shipping and tax are add-ons, not the item value.   So if sold for $750US + $20US shipping and $75US tax, the customs declaration value is $750.  

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Is harmonized system code really necessary? If so, when?


@byto253 wrote:

Selling price is the value for customs.  Shipping and tax are add-ons, not the item value.   So if sold for $750US + $20US shipping and $75US tax, the customs declaration value is $750.  


 Appreciate it. 

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