The current economy pays little attention to traditional geographic boundaries, as evidenced by the rapid expansion of American companies doing business overseas. Undoubtedly, there is a wealth of opportunity in the global marketplace for companies of all sizes to increase their revenue by importing and exporting goods. Before expanding into international markets, however, a company must know how U.S. laws and regulations classify those goods
Proper classification is the bedrock principle for importing and exporting merchandise, because it impacts almost all aspects of an international transaction. Classification determines the bottom line regarding the amount of duties, taxes and fees a company will owe when it imports goods into the U.S. Conversely, it also determines whether a company must obtain a license before exporting products.