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Custom Taxonomies not retaining hierarchy while importing from one site to another

On my site I have a Custom Post Type “listing” which has a hierarchial Taxonomy “local”.

The terms in this taxonomy are in the form of States > Cities.

For example “Washington” is a parent term & Arlington, Auburn, Davenport etc could be it’s child taxonomies.

Now when I export & import this Custom Post Type to another site, my child level taxonomies become top level taxonomies, they no longer retain the hierarchy.

I have used code in functions.php to create these, no plugins. What am I doing wrong?