The tariff species is one of the three essential concepts, along with origin and customs value, to determine the customs treatment to be applied to a good. It plays a crucial role in international trade by influencing customs duties, import restrictions or export restrictions, and documentation requirements.
The tariff species, also called tariff classification, refers to the tariff code assigned to a specific product according to the Harmonized System (HS). This internationally recognized coding system is used to classify all traded goods. The issues related to tariff species are multiple:
The tariff classification of goods is based on the Harmonized System for the designation and coding of goods, managed by the World Customs Organization (WCO). This system uses a nomenclature structured into chapters, sections, and subheadings:
To these six digits, additional national subdivisions can be added, usually bringing the code to 8 or 10 digits, such as the Combined Nomenclature (CN) used in the European Union.
The tariff classification is closely linked to the Customs Code, which establishes the rules and customs procedures applicable to imported and exported goods. The Union Customs Code (UCC) governs aspects related to tariff species, origin, and value of goods. It also provides guidelines on investigations, customs controls, and sanctions for violations. Compliance with the UCC is essential to avoid fines and other penalties.
To help businesses and customs authorities determine the appropriate tariff classification, several tools and resources are available:
To correctly establish the tariff classification of your goods, follow these steps:
The tariff position, corresponding to the first four digits of the HS code, is essential for precisely defining the type of product. A correct tariff position ensures that the customs duties applied are appropriate and comply with the current customs regulations. It also helps ensure that the goods meet all regulatory, sanitary, and safety requirements specific to their category.
Mastering the tariff species is essential for any company involved in international trade. It ensures that the goods are correctly classified, that the customs duties are properly calculated, and that all relevant regulations are adhered to. By using available tools such as TARIC and following best practices, companies can navigate the complex system of tariff classifications and optimize their business operations.
The customs nomenclature, integrated into the Harmonized System and extended by the Combined Nomenclature (CN) of the European Union, forms the basis for managing customs duties and trade policies. The World Customs Organization (WCO) plays a crucial role in harmonizing these practices globally. Therefore, businesses must be familiar with these concepts to avoid costly mistakes and ensure compliance with international regulations.
Compliance with the Customs Code is also critical to ensure efficient and compliant management of imports and exports. Binding Tariff Information (BTI) decisions provide additional legal certainty by offering official clarification on the tariff classification of goods.
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