Proactively Manage the Import Process

Product Classification and Admissibility Review

You are here

Issues and Challenges

Country-specific regulatory controls are largely determined by the product being exchanged and its classification according to the Harmonized Schedule (HS). Product classification forms the basis for nearly every tax, tariff, fee and export/import control imposed by Customs and other governmental authorities worldwide. Missing or incorrect product classifications often result in delays at customs, penalties for incorrect filing and loss of preferential duty rates.

Imported products are subject to a wide array of admissibility requirements that go beyond whether an item is permitted into the country. These include controls around labeling, content and documentation that are administered by a variety of government agencies in addition to Customs. Merchandise that fails to meet admissibility standards can be excluded from entry, seized, or even recalled after importation, resulting in increased costs and wasted time.

Challenges include:

  • Navigating the depth and detail of the HS to assign the correct product code
  • Managing products that may have different classification codes during different times of year
  • Classifying items that are parts of sets or ensembles
  • Accounting for special trade programs, such as free trade agreements, that offer preferential duty rates based on HS number
  • Analyzing and understanding all the product admissibility requirements of multiple countries and government agencies, including the CBP’s mandate that PGAs transition to ACE
  • Completing the forms with all information required to process import
  • Documenting the decision process in case of potential audit

How Amber Road Can Help

Amber Road's global product classification engine helps you correctly identify your product based on the relevant country of import (COI) and country of export (COE) while also documenting your decision criteria in case of audit. A user-friendly search wizard assists you with the classification process, providing all the information necessary to choose the right product classification.

Our classification engine can also assist you with complex classifications, such as those required for sets, ensembles or tools and cutlery. The search wizard assists you in classifying each item in a set, including the assignment of essential character.

A centralized source of product information, the Global Product Master (GPM) stores an extensive array of product data that fuels subsequent transactions. It also allows you to manage compliance for each product, and for every variant of that product.

You can store multiple COI/COE combinations in the GPM, along with the effective date of the classification. This is particularly useful to accommodate changes in HS codes or seasonal code use requirements.

Finally, choosing the correct code will ensure you pay the correct import duties and can take advantage of reduced rates if they apply.

The product admissibility review process draws on our extensive body of trade content, Global Knowledge®. You can select which items should be analyzed and choose from among extensive criteria to narrow the analysis. For example, you can retrieve compliance information based on HS, COI/COE combination, entry/shipment date, mode of transport (MOT), country of origin (COO), etc.

By conducting admissibility reviews based on entries in the GPM, Amber Road's solutions ensure that purchase orders created in the system are already compliant prior to being issued to the supplier.

 

Features Benefits

Global Product Master (GPM)

Store your entire catalogue of products and their variants
Link a product to one or more suppliers housed in the partner table
Maintain a comprehensive set of information, such as product classification, unit of measure and country of origin
Synchronize product data with an ERP or legacy system
Perform conversion calculations for currency and units of measure
Normalize codes for countries, port locations and modes of transport
Reuse GPM information throughout the system in a range of transactions

Product Classification

Classify a product in terms of its HS (including complex sets), export control number (ECN), Schedule B, or ALADI using common words or legal definitions
Search binding rulings for multiple countries
View search results in a tree structure to help compare related classifications
Use a wizard to assist with correct classification
Map a classification from one country to the corresponding code in any other country
Specify multiple effective dates for classifications

Admissibility Review

Ensure that products are classified correctly and conform to trade and regulatory requirements
Identify government agencies' reporting requirements, import licenses or permits, certificates, absolute and tariff rate quotas and anti-dumping/countervailing duties
Determine whether products may be eligible for preferential treatment under existing special trade programs
Create compliant purchase orders that streamline the procurement process
Fully meet changing mandates, like CBP’s requirement that all PGAs utilize ACE for all admissibility data requirements

Trade Compliance

Conducting global trade is enormously complex due to regulatory controls and reporting requirements. Companies must stay in compliance.

Amber Road’s solutions automate all compliance functions. Our solution performs restricted party screening against blacklists, determines import and export license requirements, generates shipping documents to file with government agencies and creates a complete audit trail.

KEY CUSTOMERS

AgilentCiscoDonaldsonGeneral ElectricLeggett & PlattUPS

“We needed to enhance our existing import compliance program and establish a comprehensive track-and-trace system for real-time visibility to our shipments.”

 

Import Export Compliance Officer
Bunzl Distribution USA

UPDATE YOUR EMAIL PREFERENCES

To receive FREE Global Trade
Management Tools and Resources

Update Now »

PRODUCT BRIEF

Brochure Icon

Global Product
Master

Meet Product
Information Challenges

Download Now »

SOLUTION BROCHURE

Import
Management

Capabilities for every
Import Challenge

Download Now »