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2.11 Import/Export Compliance

Cross-border movement of electronics is subject to strict regulatory oversight. Incorrect classification leads to customs seizures and fines. This chapter defines the requirements for HS Codes and Dual-Use screening.

2.11.1 Harmonized System (HS) Codes

  • Requirement: Every part number in the Item Master must have an assigned HS Code (e.g., 8542.31 for processors).
  • Validation: Codes must be reviewed annually against tariff updates.

2.11.2 Dual-Use Goods (Civilian/Military)

  • Screening: Components capable of military application (e.g., high-grade FPGAs, encryption chips) require End-User Statements (EUS).
  • Restriction: Shipping controlled items to embargoed nations is a criminal offense. Compliance checks are mandatory before shipment.

Final Checklist

Compliance Domain

Mandate

Risk

Classification

HS Code on all Commercial Invoices

Customs Delay / Fines

Valuation

Declare true transaction value

Tax Evasion Penalties

Export Control

Screen against Dual-Use lists

Criminal Liability