So What are Tariff Classifications? Here Riley is talking about why Tariff Classifications matter. They are the DNA of a shipment of goods so unless you get them right you will find yourself having to pay VAT and /or import duty at the wrong rate and that will be expensive.
This is a detailed area that needs careful handling – you can read more here.
Brexit has brought into play a whole raft of new considerations that businesses need to get to grips with.
The fundamentals are a good place to start and here are 4 key reasons why you should get the Tariff Classification sorted out properly:
1. Duty Rates
The tariff classification dictates the duty rate that you have to pay (which is not the same as finding the one that gives you the best rate).
2. Free Trade Agreements (FTA)
You will only know if goods qualify under a FTA by first finding the correct tariff classification for the product and then checking for how the goods might qualify under Specific Rules of Origin.
3. Anti-Dumping Duty & Quotas
Anti-dumping duty can be imposed on specific imports to protect local markets which is all tied into the tariff classification. Quotas can apply and these are also linked to the tariff classification. Duty rates under these headings can be high so getting the codes right and choosing the right time for the import can be really important.
Export licences and other certificates can be required and are also driven by the tariff classification.
So What are Tariff Classifications? They are the DNA of any movement in goods and really need to be right or all manner of bad tings can happen. It is all a case of look before you leap. Please get in touch if we can help you. Remember sooner is always better.