Potential Legal Implications of Revised HS Codes and Potential Shifts in the Regulatory Environment.
Every 5 years the World Customs Organisation updates it’s universally used HS code classification system. As technology accelerates in various fields and as new products come onto market or the status of existing products changes, it is imperative that one stay abreast of developments or risk incurring legal liability for non-compliance.
Whenever the tariff classification schedule is updated importers and exporters should be clear on the legal status of the goods they are dealing with as changes may not only affect duties but as well the broader licensing and regulatory framework of the goods involved.
Importers can run into issues in the midst of a negotiation with the Customs Department if an updated tariff schedule comes into force at the same time as said negotiation is taking place. Succinctly, changes in HS classification can have implications on how the issue is resolved. Perhaps the product in question is subject to either a higher or lower tariff than it was prior to the change. It’s also possible that a situation can arise wherein the product is no longer allowed entry without additional licensing.
Where timelines on a products shifting legal status are at issue due to changes in classification occurring contemporaneously with the shipment of goods then importers can be left feeling like they are in legal limbo. For clarity, the customs department will adhere to the law on the date of the execution of the import/export formalities. This reality gives little relief to the affected importer if the goods in question are on the wrong side of that change in regulation.
In situations where what’s at issue is simply a revision of the dutiable amount, the importer can request that the shipment be released contingent upon the payment of a deposit and the proper execution of the document process. In these situations it’s important to bare in mind that if customs formalities are not performed in accordance with the dictates of the Customs Department then fines may be levied retroactively.
The Thai Customs Department is full of delicate professionals who try to make your experience a smooth one but if you require any assistance navigating any aspect of the import/export process please don’t hesitate to engage our services. Click here for our straightforward billing process.
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