One of the most common disputes during customs clearance involves the HS Code (Harmonized System). You and your broker have selected a code, but the customs officer insists that the product should be classified under a different code—usually one with a higher duty rate.
Many importers believe they must automatically agree with the officer to avoid trouble. However, that is not the case.
You Have the Right to Disagree
If you and your broker are confident that your selected code is correct and you have the supporting arguments (technical specifications, manufacturer descriptions), you can calmly disagree with the proposed change.
What to Do: Request Customs Classification
When a disagreement arises, you have the right to request that your case be sent to the Customs Classification Department for an official expert decision.
Here is what you need to know about this process:
- It is Free of Charge: Unlike a preliminary classification service, in the event of a dispute, you do not pay any state fees or duties for this classification request.
- Securing the Funds (Deposit): To avoid having your cargo stuck at the terminal while waiting for the decision, you can release it by "securing" the potential tax difference:
• If the duty rate of the officer's proposed code is higher, you simply freeze the amount of that difference in the customs account.
• If the classification result proves your code was correct, the frozen amount is fully refunded to you.
• If the new code’s rate is the same or lower, no funds need to be frozen at all.
Why This Matters
This tool protects you from subjective decisions and unnecessary costs. You aren't losing your money; you are providing a guarantee until the experts provide a final conclusion.
Brokers.am platform helps you find professional customs brokers who know how to defend your interests and properly handle classification disputes. Knowing your rights is the first step to saving your business money.
