The cornerstone of the global trading platform is the classification of products under the WTO’s Harmonized Commodity Description and Coding System, generally known as the Harmonized System (“HS”), implemented in the United States under the Harmonized Tariff System of the U.S. (“HTSUS”). This global system defines among and between all member nations a codified methodology for defining what a product is as it crosses international borders. In most countries, the HS serves for both import and export classifications. By contrast, in the United States, there is an additional, simplified classification system foe US Exports called the Schedule B. In the first half of this session, we will discuss these classification systems, what the legal rules are for applying them to your globally trade goods, and how best to meet the legal standard of exercising reasonable care when assigning classifications to your imported and exported merchandise.
Building on classification as a cornerstone, most trade agreements in the modern era provide for eligibility for preferential tariff treatment under one of two competing or conjoined theories, namely regional value content or “tariff shift”. In the second half of our session, we’ll focus on the tariff shift methodology for conferring preferential origin on goods trade among and between Canada, Mexico and the United States under the North American Free Trade Agreement, “NAFTA”, and what documentary evidence is required to prove such eligibility.
Participants will get in-depth knowledge of harmonized tariff schedules and updates on NAFTA rules of origin and documentation from this training.