Brexit has introduced a large number of businesses to some new rules which form the nuts and bolts of moving goods around Europe so it is important to get them right.
Brexit & the Tariff is now a vital consideration that you must get right.
If you are going to avoid problems one vital step is to make sure the commodity code being used is correct. Before goods can be cleared through either the UK or the EU import systems the commodity codes must be included in the customs declarations. Therefore it is important to use the UK Trade Tariff Tool at www.gov.uk to accurately categorise goods to the correct code otherwise any duties will be at the wrong rates and the wrong rules and possible restrictions could be applied.
A commodity code is made up of pairs of digits, the first pair specifies the tariff chapter with subsequent pairs specifying the precise characteristics of the product in question. The six digits used in the UK follow the Harmonised System whereas the EU has added further digits up to as many as 14 digits in all.
Most tax authorities have now published their commodity codes online and the UK Trade Tariff Tool to is very user-friendly.
In addition you might also Email HMRC for advice firstname.lastname@example.org or obtain a Binding Tariff Information (BTI) ruling by registering for the eBTI tool on the Gov.uk website and providing full details and images of the goods email@example.com
Deciding whether duty applies
Import duty on shipments to countries in the EU will depend on the preferential rules of origin which is a topic all to itself but is also important to understand. The building blocks here include:
- Check whether there is a preference agreement in place.
- Check if goods are covered by the agreement.
- Check if the goods meet the rules of origin and obtain evidence.
- Include preference information on the Customs declaration.
- Consider if prior duty payments are correct and consider reclaims.