Tariff Classification – Draft Procedure Tips

One of the questions we get asked often by UK companies is:  “how do I put together a written procedure for tariff classification”?  So we drafted out a skeleton around which companies may add their actual procedures.  We thought we’d share it with you, hope the following helps: Introduction: All UK businesses must declare any imports or exports to HM Revenue and Customs (HMRC). This is to ensure that any import VAT, duty, excise or levies due on them under UK and European law are collected. How different goods are classified largely determines what duties and controls apply to them. HMRC uses commodity codes found in the Integrated Tariff of the United Kingdom (the Tariff) to classify individual products. Classification of commodities is necessary for import and export declarations as well as Intrastat returns. Other government departments also rely on Tariff classification for licences and other documents. The Tariff is based on the EU TARIC (Tariff Intégré Communautaire). Member states of the EU hold commodity codes in the TARIC. Commodity codes and other regulations are updated daily, which ensures that importers and exporters can rely on the same standards and treatment throughout the EU. The UK Trade Tariff uses the daily updates of the TARIC directly, so that Tariff users have access to consistent accurate information. The person responsible for tariff classification matters is ******* (include name/position of persons involved) reliant on information provided by purchasing and sales teams as required.  The instructions are issued to all import agents with regard to tariff classification and import entries are received and checked to ensure compliance.  Data is also managed via the HMRC MSS information received. Records of product data and commodity codes are maintained by ******** as well as being listed on the import spreadsheet The tools used when classifying a new product include the HMRC Tariff Book and the www.gov.uk website link.  Full data is obtained from the relevant internal department.  If no obvious commodity code applies then in the first instance the HMRC Tariff Classification helpline is contacted (Tel 01702 366 077).  Depending on this discussion a Binding Tariff Information Ruling (BTI) may be requested.

A BTI is legally binding throughout the European Union (EU) for up to six years after the date of issue and provides the correct commodity code for your goods with a unique reference number.  Once obtained we must enter the BTI reference number in Box 44 of the Single Administration Document (SAD), which must accompany your goods throughout the EU.  BTI’s currently