Exporting ecommerce to EU? Are you harmonized?

Beginning March 1, 2023, a new regulation comes into effect that requires all importers into the European Union to provide the EU Harmonized Tariff Schedule (HTS) code. This new regulation is designed to provide a standardized system for identifying products that will be used for trade statistics, tariffs, and other regulatory purposes.

The HTS code is a 10-digit number (for now, only 6 digits are required) that classifies goods for customs purposes. It is used to determine the appropriate rate of duty and any other taxes or fees that may apply to imported products. The new EU HTS requirement applies to all products entering the EU, regardless of their origin or value.

The new regulation will have a significant impact on shippers and importers, as they will be required to provide the correct HTS code for each product they import. Failure to comply with this requirement can result in significant penalties, including fines, and delays in the clearance of goods at customs.

The penalties for non-compliance with the EU HTS requirement will vary depending on the severity of the violation. For minor infractions, such as a small discrepancy in the HTS code, importers may receive a warning or a small fine. However, for more serious violations, such as intentional misclassification of products or failure to provide a HTS code altogether, importers may face much steeper penalties.

In addition to penalties, non-compliance with the EU HTS requirement can also result in delays in the clearance of goods at customs. Customs officials will be required to verify the accuracy of the HTS codes provided by importers, which can lead to delays in the release of goods. These delays can result in increased costs and lost revenue for importers, as well as damage to their reputation.

To avoid penalties and delays, importers must take steps to ensure that they are in compliance with the new EU HTS requirement. This includes identifying the correct HTS code for each product they import and ensuring that it is included in all relevant documents. Importers may also need to work with their suppliers to obtain the necessary information to determine the correct HTS code for each product.

In conclusion, the new EU HTS requirement starting on March 1, 2023, is a significant regulatory change that will impact all importers into the EU. Importers must take steps to ensure that they are in compliance with this new requirement to avoid penalties and delays in the clearance of goods at customs. As with any new regulation, there may be some initial challenges and adjustments, but ultimately, the EU HTS requirement is designed to create a more standardized and efficient system for identifying and regulating products entering the EU.

If you need help figuring out what you need to do to be in compliance, feel free to message me here and we can schedule a call to discuss the details.