Two of the cornerstones of Duty Management are Tariff Classification and Origin of goods. Tariff Classification and Origin impact directly on what duty you or your customer will pay and what customs procedures you should employ.

Tariff Classification

The duty liability of imported goods depends on their tariff classification. Tariff classification is also used to determine whether the goods are subject to other measures such as quotas, anti-dumping duties and import or export license requirements.

Rules for gaining preferential treatment for goods (GSP, EUR1, and ATR1) are dependent on the tariff classification of the goods.

When investigating the possibility of using Customs Procedures the tariff classification of the import goods and the resulting product is crucial in determining the procedure best suited to a particular company.

We can assist in determining the correct classification of your goods for Import, Export and Intrastat purposes. If you need an official ruling as to the Tariff Classification of your goods (BTI) we can help in identifying the appropriate tariff code and the potential impact that the classification will have on your business.

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Origin

The country of origin of goods is another important factor in determining the customs treatment of goods. Origin in conjunction with tariff classification can determine whether goods are subject to import prohibition or restriction or indeed if the goods qualify for preferential treatment by customs.

There are two kinds of origin “Non-preferential” and “Preferential” origin.

Non-preferential origin is concerned with issues such as anti-dumping duties, import or export restrictions and quotas.

Preferential origin allows goods to be traded between EU and Non-EU countries at reduced or zero duty rates. In order to benefit, goods must fulfill certain conditions laid down i.e. the goods must be the produce of the originating country or must have undergone a certain minimum level of processing.

In February 2008 the EU issued an alert warning that GSP Form A's issued in Bangladesh may be false or fraudulent. This warning is in respect of textile clothing imported under Chapters 61 and 62 of the Customs Tariff. Where a Form A is found not to be valid the full duty rate which can be as high as 12% will be applied to imports instead of the preferential rate of 0%.

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