I saw a thread on this website that discussed export of cat litter from the US.


This brought to mind: be aware that a small change in a product can dramatically change the duties paid.


I was told of an exporter of cat litter experience:


Plain cat litter was exported to the EU. The duty paid to the EU was very low or free. Later the EU importer purchased cat litter with fragrance.

This changed the product for purposes of the tariff to a "composite good", or a good made of different components. Thus the tariff classification was different from the plain cat litter and the duty substantially higher. The EU authorities charged the EU broker aprox USD 300,000 in duties which the buyer did not want to pay and the exporter in the US did not want to pay either.

I am not aware of the outcome but it probably headed to court.


By the way, in the EU, the Customs broker is legally responsible for additional duties imposed. In the US it is the "Importer of Record" who is legally responsible for additional fees and duties imposed by Customs.....not the broker.


How to avoid the above pitfall and trouble like this?


Extensively consult a professional. You would be shocked at the great amount of advice and knowledge you can get for very little cost or in most cases for free.