Company C is a Japanese manufacturing enterprise set up in Zhongshan, mainly engaged in the production of auto parts. Company C mainly imports major components from overseas related parties. In July 2015, the in-charge customs authority issued the “Notice of Inspection” to Company C, to implement the inspection on the import and export business from July 2013 to June 2016.
During the inspection, the in-charge customs authority indicated that the HS code of a type of imported auto parts was wrong. The HS code used by Company C applies to the import tariff rate of 7%, while the HS code identified as correct by the customs applies to the import tariff rate of 10%.
- Through the interview with responsible people of Company C and the review of relevant documents, to master the property of the auto parts
Based on the property of the auto parts, to study Customs Tariff, relevant comments and professional books about auto parts to analyze the reasonability of the HS code used by Company C.
To assist Company C with preparation of explanation letter and related documents.
To assist Company C with the explanation to the in-charge customs authority.
With repeated negotiation, the in-charge customs authority accepted our explanation documents, and determined that the HS code used by Company C is reasonable with no need of adjustments.