Importers urged to do their tariff heading homework

You should not presume at first glance that the tariff heading chosen by a freight agent for your imported products is correct, according to Wayne Kasselman, logistics manager of Pentel SA. Do your own research, he added, and you could save big bucks on the duty you pay to Customs & Excise. “To be an importer and distributor in a market where your product is in direct opposition to many so-called similar or identical products said to perform the same function as the imported product, you need to find distinguishing characteristics that determine the uniqueness of your product,” Kasselman told FTW. It’s not an easy task, he added. Finding distinguishing characteristics between the imported products versus the locally-manufactured product, and submitting these reports to customs, takes time and hard work – and is not always guaranteed to yield results.” Kasselman also noted that customs would always look at protecting the local manufacturer against the importer. “Rightfully so,” he said, “as jobs need to be protected against imports that do nothing to benefit or grow our economy.” However, when an imported product has no direct, locallymanufactured opposition, it is easier to apply to customs for a reduction in the duties, he said. “In such a case there would be no company that would require the necessary protection or could object to a possible reduction.” It is a different story when you are trying to get a reduction on a product that is similar to – but not entirely the same as – the locally manufactured product. “This is due to things like composition, distinguishing characteristics or specific target markets,” said Kasselman. “This would prove to be more difficult, but nor entirely impossible.” Returning to the tariff heading chosen for your product, Kasselman stressed that importers would be under the wrong impression if they thought that it was the job of the clearing agent to ensure that their product carried the correct tariff heading. “It is always beneficial to know your product and your market,” he said, “and to do the necessary research regarding the duties applicable to your product.“It is never true to say that a pen is just a pen.”