Brokers fret over U.S. Customs northern border tariff classification
Customs brokers operating along the U.S./Canadian border are warning their customers that delays may occur after Oct. 1.
On that date, U.S. Customs and Border Protection is expected to hold firm to its requirement for classification of all goods entering the United States valued under $2,000.
Current regulations allow the classification details for merchandise valued at less than $2,000 to be sent to Customs up to 10 days after shipments are released.
“Under the new requirement, the tariff classification of all items in a shipment, even those valued as low as 50 cents, must be determined and submitted to Customs before they will be released,” said FedEx Trade Networks Transport & Brokerage in a notice to its customers Friday.
“When goods cannot be classified quickly due to a lack of information, not only will the shipment at hand be delayed, but others queued up behind it might be also,” FedEx Trade Networks said. “Delays can mean late deliveries, lost sales, and higher transportation and handling goods for importers.”
The Northern Border Customs Brokers Association has asked Customs to reconsider how the regulation is implemented. Customs insists that the information is needed for security purposes.