The Code of the Road

As companies globalize, rapid prototyping service providers are often asked to ship their products internationally. Although the delivery stage of the procurement process may seem trivial, appropriate attention must be given to this process because getting the product through customs can often be delayed and expensive if the proper documentation is not included with the shipment. One of the key questions most importers and exporters ask when shipping internationally is: "What is the Harmonized Tariff Code for the product that is being transferred?" That code can be found in the Harmonized Tariff Schedule (HTS) of the United States published by the International Trade Commission and administered by the U.S. Customs Service. For a quick reference log onto: http://dataweb.usitc.gov/scripts/tariff.asp.

The Harmonized Tariff Code is a number that is used to properly identify products that are leaving and entering countries. This code also determines the percentage of tariffs that are charged to the companies importing the products. Many questions therefore arise as to how products created via rapid prototyping processes should be identified because there are a broad variety of codes that can be correctly applied to the end products.

For example, a prototype of a silverware tray shown in Figure 1 was created by the stereolithography process using an epoxy-based photopolymer that mimics the properties of common engineering plastics. Based on this description, a broad variety of potential HTS numbers can be generated. Some of the immediate possibilities that come to mind include plastics, epoxies, prototypes and the name of the item created out of the process: a silverware tray.

The drawback of being able to identify so many different Harmonized Tariff Codes is that tariff rates vary broadly from one description to the next. In this example, the cost to prototype and finish the tray shown in Figure 1 was approximately $1,500. Depending on the code that was identified in the shipment, the additional cost of shipping the part from the United States to a country such as the United Kingdom could range from $0 to $82.50. Depending on what agreements were made upon producing the part, the service provider could be responsible for this extra cost. Also, if a person had shipped the product under the description of the epoxy material and a customs agent looks at the part, they may have additional questions due to the non-obvious classification that would delay the delivery of the part.

The bottom line is that if you have questions about the most economical solution for shipping products internationally, don't hesitate to contact the U.S. Customs Service to ask how products should be classified. A national directory of offices is available at: http://www.customs.treas.gov/location/service1.htm.

Also remember that the U.S. Department of Commerce is charged with assisting U.S. businesses in successfully exporting their products and can be an additional, frequently local, source for guidance in these matters. Use its website by logging onto: www.commerce.gov/index.html.