Eligibility and coverage

Brokers will take provided HS codes under advisement when clearing a package. If, upon reading the description of goods, the broker disagrees with the provided HS code, they will use the HS code they feel most accurately reflects the item classification. A change in the HS code will likely result in a much higher duty amount than the original code provided on the paperwork.

When customs or a broker feels an item is undervalued, they will research the provided good to ensure the proper valuation is used. When they disagree with the valuation, they will use a “market” value they feel most appropriately reflects the value of the good. If customs deem an under-valuation intentional, they may also apply penalties or fines to the export. The burden of proof is with Zonos to demonstrate to customs the goods were properly valued.

Customs and brokers can make mistakes when calculating duties and taxes. If customs calculates incorrectly, it is unlikely the exporter will be aware, and it is time-consuming to request a refund or adjustment of the amount paid. As needed, Zonos will contact the broker or the customs office to determine if a refund or adjustment is warranted.

A country can change its tariff or tax rates at any time. However, most countries will provide notice and an opportunity for public comment before implementing changes to their tariff or tax rates. With a 90-day guarantee, the likelihood that duty and tax rates change before the shipment clears customs increases. When this occurs, Zonos still honors the calculated amount.

Zonos calculates duty and taxes on the destination currency, not the base/export currency. This is consistent with how calculations are done by customs upon import. Zonos applies a forward premium to the forex amount, and it is inclusive of customs or brokerage foreign exchange fees and accounts for the risk associated with fluctuating exchange rates.

When you ship in the Dashboard, the prices on the commercial invoice will match the buyer's order. The total amount of the order and the total value of the goods on the commercial invoice should always match. However, there are times when the item amounts on the commercial invoice don't match 1:1 with the order. An example would be when Zonos consolidates line items by HS code or correctly displays discounts, the order will still be covered as long as the commercial invoice totals match the order total. If you change an item value that does not reflect the sale price, the guarantee will not be available.

There is no need to change the HS code unless you change it to accurately reflect the item's appropriate code. Zonos Classify can help with classification to ensure an accurate code is used on the commercial invoice. If you change an HS code to an inaccurate code, the guarantee will not be available. We recommend not changing the code after the guaranteed quote unless you are confident it is the accurate classification.