Goods codes and classification
Use a wrong commodity code can have far-reaching consequences.
Consequences such as:
Too much or too little customs duties payed. As a result, a request for payment at or are found guilty of tax evasion.
How important is a commodity code.
The commodity code used in the customs declaration is the heart of the measures and levies that affect how we do business.
” For bicycles from China you pay 14% taxes and 48.5% anti-dumping duties. The same bike can be made in Philippines and imported by means of a preferential rate without anti-dumping charge you will pay 0%. ”
The choice is now made.
The European Union demands that you can prove that the bicycles originated from the Philippines. You must origin by a preferential document in this case a Form (A).
On the basis of the goods code and country of origin with the Form (A) the customs clearance must have the code specified for the preferential origin.
The classification of the bicycles consists of the goods code, additional documents or additional codes.
Good codes do get changed.
Codes do get changed as the world moves forward. Most changes will be delegated by the authority’s on the 1st of July and the 1st of January, changes necessary will be implemented immediately.
Changes on the jurisprudence can also affect the determination of the goods code. It is that you always check your goods codes.
Goods code determination.
Goods code determination can often be quite tricky.
How should you determine the goods code?
For the determination of the goods you must first assess what is the product, what is the essential character and, perhaps how you use the product, are they offer in ranges, is it a composite product, etc. I can dedicate a book on how you can classify a product instead of that I can support you with your classification.
Do you need to classify one product or do you have a webstore in a foreign country that’s delivering to your customers in the European Union we can help you.
If you want to know how we can support you.Contact us.