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Dossiers internationaux
Practice review: customs classification disputes and duty costs
A product's customs classification decides its duty rate and is a frequent point of cross-border dispute.
A typical scenario: an importer's classification differs from the authority's view, leading to back-duties and penalties, with cost far above expectation.
Classification looks like a technical detail but directly decides rate, regulation, and compliance, and borderline products are especially prone to dispute.
The lesson: confirm the classification basis for key products in advance, seek an advance ruling where useful, and factor classification uncertainty into cost estimates.