Transcript Tallin – Estonia 8 September 2004

Ankara, Turkey
23 February 2005
Tariff Classification
Greetings from UK Customs!
The three liability elements
Tariff
Classification
Valuation
Origin
Aspects
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Importance of Tariff Classification
Background to tariff structure
World Customs Organisation
Harmonised System Nomenclature
General Rules of Interpretation
Nomenclature Committee
Opinions
Explanatory Notes
European Community
Combined Nomenclature
Nomenclature Committees
Explanatory Notes
EC Regulations
Statements in Committee minutes
Binding Tariff Information
Dealing with classification disputes and issues
The importance of Tariff
Classification
 Nearly all Trade policy measures are
attached to the tariff classification
 These include import duties, preferences,
anti-dumping, licences,suspensions,quotas.
 The Tariff is used as a basis for Trade
Agreements- WTO- HS6
 Trade statistics depend on accurate
classification – Balance of payments
The importance of getting it right
 In the EU we can call for arrears of duty for
up to 3 years after the date of importation
 Too late to recover from consumer
 Pay out of own pocket!!!
 Other attached measures might be wrong
World Customs Organisation
World Customs Organisation
 Harmonised System Nomenclature forms the core
structure of over 200 countries customs tariffs
world-wide
 HS comprises the 4-digit Headings and 6-digit
Sub-Headings
 Alphabetical Index
 6 General Rules of Interpretation
 WCO Opinions
 HS Explanatory Notes
General Rules of Interpretation
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2a
2b
3a
3b
3c
4
5a
5b
6
Text of Headings and Sub-Headings, and Section
and Chapter Notes
Unassembled or unfinished goods
Mixtures – use Rule 3
Most specific description
Essential character, Sets
Equal merit – last heading in numerical order
Most akin
Packing specifically for the product
Normal packaging for transport
Rules also apply to sub-headings
Sets
 Must be put up in sets for retail sale
 Consist of at least two different articles that
are classifiable in different headings
 Consist of articles put up together to meet a
particular need or function
Parts
 Articles are only classified as parts of the
article for which they are intended if there
is no more specific heading
for example car tyres are classified as such
in articles of rubber (Chapter 40) and not as
parts of cars.
EC Combined Nomenclature
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EC further sub-division of HS to 8 and 10 digits and
beyond
Also used by many non-EU countries, especially
CIS, Turkey, EFTA, CARDS, MAGREB etc
Four Customs Code Nomenclature Committees –
Agriculture/Chemicals
Textiles
Mechanical/Electrical
Miscellaneous
EC decisions
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Entry in the Committee minutes
CN Explanatory Notes
EC Regulations
Change to the CN
Binding Tariff Information
European Court of Justice rulings
Binding Tariff Information
 A trade facilitation measure to provide legal
certainty
 Binding on customs administrations
 6 year validity (but will become 3)
 Customs can revoke, but allow period of
grace
 Accessible on Internet (Europa)
 Review and Appeals procedures
Getting your voice heard
 Raise issues with your customs
administration – including review and
appeals, courts
 Customs administrations are more likely to
listen to Trade Federations/Associations
 Possible trade representation at both EC
and WCO classification committees