Why to classify your products for exports #ExportPreneur
Classify your product to export is the base to set price, select markets and know your competitors.
1. Influence the final price of the product in the foreign country. Country governments evaluate the product for taxes based on codes that meet Harmonized Tariff Schedule and other standards. Countries use also these codes for statistical purposes when the products enter into that territory. The exporter avoids misclassification to reduce the risk of raising the price to the final customer due to high duties and taxes.
2. Help the international market selection. Locate the best countries to export is a process that uses classification codes provided by HTS and Schedule B. Each country reports imports and exports based on these classification codes. The exporter does research new markets using the correct classification. Although commodity codes are composed of 10 digits, for international market research is common to use just the first 6 digits of the product code. The last 4 digits are used in different ways according to each country rules.
3. Contribute to understanding competitors. The United States uses its own classification standard named Schedule B Export Code. Most products have the same 6 digits that HTS system uses. Using Schedule B, each US exporter reports to the US government information about the product, destination, trade value, quantity, etcetera. The exporter uses Schedule B standards to research his competitors and what markets they are focused on.
ExportPreneur is an export awareness program that helps companies new to export with news, tips, and tools.