Strategic Planning
Classification
|
The classification of products is not always a straight-forward, scientific and well-regimented process. There are and will continue to be substantial disagreements between importers and customs and between different countries over the appropriate classification for a product. Along with valuation and origin, the tariff classification of imported products is one of the most important factors in determining the rate and amount of customs duty which will be assessed on the imported goods. The import duty rate directly follows from the classification of the product in the EU Customs Nomenclature and different rates may apply to raw materials, half products and the finished (consumer ready) product. |
Correct classification of products is of importance in order to guarantee that the right amount of duty is paid and to ensure that any special measures which are also linked to the classification code (e.g. import and export licenses, quotas, origin requirements) are taken into account. Significant amounts of import duties are sometimes overpaid/underpaid because of misclassification. In general, the lowest rate is on raw materials and the highest on finished products. For further information, see also classification under helpful links.
CustomsAdvisoryPlus' classification services cover the following elements:
- Suggestions re. redesign merchandise to achieve duty savings under tariff code
- Perform tariff analysis to uncover alternative classifications for existing merchandise, since product descriptions in tariff code often overlap
- Appeal against unfavorable customs tariff classification determinations
- Prepare binding ruling requests to confirm alternative (lower) duty rates
- Ensure that a process is in place to consistently and correctly assign tariff codes (and corresponding tariff and tax rates) when used for customs, tax or related reporting, as well as when the classification is utilized in making preferential or non-preferential origin determinations.
Customs valuation: see here
Sourcing: see here
Suspensions/Exemptions: see here
More information: contact info@customs.a.plus.com