Every importing business should be aware of the importance of correctly classifying their products. Establishing the correct tariff classification will determine;
- The rate of customs duty applicable to the goods at import
Any additional duties that may apply, for example anti dumping duty
Documentary requirements (e.g. import licences, certificates of origin etc)
As importer of the goods, it is your legal responsibility to ensure that your products are classified correctly, even if you rely on your freight forwarder to provide this service for you.
Finding the correct tariff classification for your products amongst the 14,000 or so codes in the UK Tariff may not be straightforward. Goods falling in certain sectors of the tariff (e.g. clothing, footwear and toys) can be particularly difficult to classify.
HCL can provide a full range of tariff classification services to suit the requirements of any importing business.
Tariff Reviews
A full product range review, ensuring that all new, or previously imported products, have been correctly classified. On completion, a schedule is provided, usually in Excel spreadsheet format, confirming the tariff classifications, duty rates and other associated details, such as documentary requirements for each product.
Usually undertaken as part of an overall health check, a full tariff review will ensure that you are paying no more duty than is necessary and enable you to accurately cost your products prior to import.
BTI Rulings
A Binding Tariff Information (BTI) is a written tariff ruling issued by HM Revenue & Customs that is legally binding on all EU member states, and is valid for a period of six years.
For products where classification is considered contentious, it is prudent to obtain a BTI prior to importation. By submitting persuasive argument in support of applications, and, where helpful, referencing previously issued rulings, HCL has a proven track record of obtaining favourable BTI rulings covering goods classified across all sectors of the tariff.
Applications are normally made on a no-win-no-charge basis, with fees only payable if the most advantageous classification is secured.
BTI Appeals
There are several stages of appeal available to importers who have had a BTI ruling issued that they do not agree with. In the first instance, an internal review by Customs (known as a Departmental Review) can be requested. If unsuccessful, the case can be taken to the VAT and Duties Tribunal.
HCL can assist importers considering an appeal by firstly assessing the likelihood of a favourable outcome; this will avoid unnecessary expenditure in cases where the chances of success are minimal. If it is considered that there are grounds for appeal, HCL can assist in preparing and submitting relevant material to Customs on a no-win-no-fee basis.
Verbal Classification Advice
Importers simply seeking quick and easy access to tariff classification advice may wish to consider subscribing to the Hexagon help desk. Classifications can normally be confirmed on the basis of verbal descriptions, though additional technical literature or product samples may sometimes be required.
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