Essential guide to tariff classification

Course Overview

Knowing you have the correct commodity code classification for your goods is an extremely important element in declarations made to customs authorities world-wide, whether at export, import or EC trade statistics. This course aims to clarify the rules relating to the selection of commodity codes and guide you on where to go for further advice and information. It will also make delegates realise the importance of getting this number right. You may think this is only relevant for importing companies --you would be wrong, the correct designation of a commodity code is linked to trade agreements and other countries' regulations all around the world and are required when making statistical declaration on EC trade (Intrastat).

The aim is for all attendees to get a better practical understanding of issues relating to tariff classification and understand the jargon that surrounds it. Understanding of the financial penalties that may be applied to both exporters and importers if you get the numbers wrong is also important. Delegates will immediately see a benefit in attending this presentation on returning to their working environment as the aim is to not only enhance their understanding of the issues but give them confidence when talking to other departments within their organisation, freight companies and HMRC. Previous experience or knowledge in the topic areas is not required to gain full benefit from attending. Specific guidance related to certain classes of goods is given during the day but not individual product classifications.

Audience

Everyone who has any connection with international trade either at import or export will benefit. The following are examples of the type of company personnel who need to keep up-to-date:

• Import administrators and managers responsible for controlling customs declaration
• Buyers, purchasing and procurement staff who need to understand what additional costs or restrictions the commodity code will add to their purchases
• Export administrators who raise invoices bearing these codes or issue instructions to freight companies
• Sales staff - who need to understand the implication a commodity code will have on selling their product into an overseas market
• Freight forwarders and clearing agents who may be asked by their clients to make this important legal decision when entering goods to customs
• Accounts departments or others involved in submitting the EC reports (Intrastat reports)
• Delegates who have previously attended the one day import or export courses
• Managers responsible for customs control and compliance

Skills Gained

Delegates will learn to:

• Identify any cash savings that may arise from the correct classification of your goods
• Understand and avoid the financial penalties that may be applied to exporters and importers if they get the numbers wrong
• Be prepared if additional regulations apply to your goods at import because of the commodity code used (UK/EC or to your overseas customers) so you can plan accordingly
• Keep up-to-date and know quickly where to go for further information on key topic areas
• Learn which international regulations are linked to the Harmonised System of commodity codes and how to apply this knowledge practically
• Ensure that your Customs declarations are accurate and compliant with UK/EC law
• Give you confidence in an often misunderstood or neglected area

Course Outline

Introduction and aims of the day

Summary of the topics

• What is the Harmonised System
• Why is tariff classification an important subject
• Internal responsibility - who should classify and when?

The Harmonised System

• The structure of the Harmonised System (HS) Code
• How the HS Code is used around the world
• Building up a tariff description
• The European Union and the HS Code

The Combined Nomenclature and TARIC

• Understand the structure of the EU tariff for statistical purposes, export declarations and import declaration
• Reading the schedule - paper versions and electronic
• Other information in the Tariff Book
• Using the explanatory notes and the section and chapter notes
• Getting full product information

Information linked to the tariff codes

• Sources of information linked to the tariff - UK/EC/ world-wide
• Import duty rates - and the different types
• Import restrictions - licensing, quotas, special documents
• Preferential trade agreements

Tariff Classification

• The General Interpretative Rules (GIRs)
• When you can use a headings that say "Other, other, other"or "parts of ..."
• Special products areas reviewed, eg textiles, clothing, software, computers, leather goods, ceramics, etc
• Guidance available from HMRC
• Binding Tariff Information rulings - what has happened in the EU

Essential guide to tariff classification / CM032345