HS codes: five costly mistakes

An HS code defines both the duty rate and the permit set. A classification error can change either.

The first common mistake is to classify by application (“for woodworking”) rather than by design. The second is to copy a supplier's invoice code without checking the current tariff.

The third concerns software: some equipment requires a separate encryption opinion. The fourth is ignoring completeness: additional modules may be classified separately.

The fifth is failing to document the classification rationale. A solid dossier with descriptions, diagrams and specifications reduces dispute risk and speeds release.