International Shipping: Everything You Need To Know About Tariff Codes

Do you need to ship goods overseas? If so, you want to make sure you learn about the different tariff codes for international shipping.

Tariff codes are used by customs to charge taxes and duties on imported goods. Your recipients might ask that you cover these costs before sending the goods.

As such, you want to make sure you familiarize yourself with tariff codes to determine your costs.

Here’s what you to know about what are tariff codes and who needs a tariff code.

HS Codes

You want to learn about HS codes when shipping goods. The Harmonized System gets used for applying taxes and duties.

It helps you predict how much you’ll get charged for your goods. These are usually 6-digit codes that are assigned to specific categories. The U.S. uses 10-digit codes for exporting goods.

You can look at these codes for the U.S. here.

Who Needs a Tariff Code?

Not all goods will have tariff charges when you export them. The tariff charges will also depend on the country that you’re shipping to.

Governments and different administrations can implement or eliminate tariff charges and rules on a whim. It’s imperative that you keep yourself updated with tariff laws at all times.

This is especially crucial if you run a business that requires regular shipping. If you run a dropshipping or e-commerce business, your business might depend on knowing tariff charges.

Many customers will prefer if you charge them tariff charges upfront. If they get hit with a charge upon receipt, they might find it to be an unpleasant inconvenience.

They might also request you to educate them on the exact tariff charges, laws, and regulations. Most customers won’t want to go through the hassle of learning this on their own.

Your business can stand apart if you let your customers know about tariff rules.

What You Should Do

So what should you do for your business? What happens if you need to handle international shipping and deal with tariff codes?

The first step is to read the tariff rules of your jurisdiction. Make sure you also learn the tariff rules of any jurisdiction that you ship to.

You want to also find the best logistics solutions for your business. This will help you find how to ship your goods in the most efficient manner possible. You can use a service such as Dedola where Brett will work his magic to find the best solution for you.

Make sure you also offer different shipping solutions to your customers. If they have to pay high tariff charges, you can consider lowering your shipping costs.

That’s How Tariff Codes Work

Now that you know how tariff codes work, you can share this guide with other e-commerce entrepreneurs.

It’s important to understand the rules of your jurisdiction and those of where your customers live. You want to make sure you pay attention to changes in tariff regulations as these can affect your business.

Finally, use the services of a logistics company to help with your shipping and tariff responsibilities.

You can find more content on business laws and regulations on our website!