Properly assigning the correct tariff code to items involves careful attention to detail, a knowledge of trade regulations, and an understanding of the nuances in product design and production. No one ever said classification was a simple task!

Here, we explore some of these key challenges and common pitfalls, as well as explain how our TariffTel solution helps streamline the process so you can focus on the joys of Christmas. Wouldn’t that be nice?

Key considerations in classifying Christmas products

When classifying Christmas items, it’s essential to determine whether the product is a festive article under Heading 9505 or if it falls into a different category. Factors such as material, intended use, and design all play a role in deciding this from the very start.

For example, is a Father Christmas costume considered a festive article, or is it classified as a garment? If an item is winter-themed rather than Christmas-specific, should it still be under festive articles, or does it fall into general decorative categories? These are some of the questions to ask yourself which will ensure you reach the correct tariff code.

Common problems in classification

A common issue we see is the misclassification of Christmas costumes. For instance, a woven textile Father Christmas trouser and jacket set is often mistakenly classified as a festive article (Heading 9505). It’s easy to understand why, this is on the surface a Christmas outfit after all. However, due to Chapter Note 1e, which excludes fancy dress of textiles, these items should be classified as individual garments under Chapters 61 or 62. Even though we wouldn’t wear a Father Christmas costume in the day-to-day, and these costumes are often relatively flimsy and not necessarily “well made”, they are still classified as if they are regular garments of Chapter 61 or 62 based on Chapter Note 1e.

On the other hand, an inflatable Father Christmas costume is considered a novelty item, not for general wear and is not made of textile, so would be correctly classified under Heading 9505.

Another tricky area is snow globes. Understanding where snow globes, and other Christmas or Winter themed ornaments should be classified requires an understanding of what the Tariff deems to be “Christmas themed” and what is simply a winter theme. This distinction is not immediately clear, however, if we examine the Additional Chapter Notes for Heading 9505, we can find the answer.

Additional Chapter note 1a) explains in the first paragraph that this heading covers, “…articles recognised as being used at Christmas festivities due to long standing national traditions, such as…Father Christmases with or without a sledge”

Following this, in the final paragraph it describes the articles not associated with Christmas Festivities, “The subheading does not cover articles of the winter season which are suitable for a more general use as decorations during that season…such as reindeers, robins, snowmen, and other images of the winter season…”

Therefore, a snow globe featuring Father Christmas would qualify as a festive article and would be classifiable in 950510. But a winter scene without any Christmas elements, such as a reindeer in a snow-covered forest, would be excluded. They are considered more in more general terms as ‘winter themed’ and would be classified based on material composition, not as a festive article. It is also important to remember that even if the base of the snow globe predominates by weight, the globe itself provides the essential character and would drive the classification.

Getting Christmas classification right with TariffTel

At TariffTel, we make it easy to get customs classifications right by providing intuitive tools that guide you through the classification process. Our system simplifies complex regulations and ensures compliance with the most up-to-date tariff information, saving you time and avoiding costly errors.

Whether you’re classifying costumes, ornaments, or any other seasonal products you can throw at it, our expert-led customs classification solution, TariffTel helps you navigate these challenges with confidence! Get in touch to find out more.

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Back to school is a key time in the retail calendar and the range of school products expands year on year from pencil cases to rucksacks, lunchboxes and geometry sets. Back to school products can come with classification challenges and it’s never as simple as ABC when assigning the correct and compliant tariff code. Understanding the intricate rules and nuances of the harmonised system means classification teams can assign the correct tariff codes to items and ensure they reach shelves without delay ready for the start of the school year. Coupled with our accurate classification solution, TariffTel, you could just get to the top of the class!

Let’s dive into three seemingly simple school items to see how classification can become surprisingly complex and how best to solve them.

Pencil Case: Plastic Sheeting or Plastic Moulded?

At first glance, classifying a pencil case seems easy—it’s a case, so it belongs in Heading 4202, right? Not so fast. The complications arise from the structure of Heading 4202 itself, which is divided into two parts. The first part allows for various materials as long as the item fits the category, while the second part is more restrictive, specifying materials like leather, textile, and plastic sheeting.

If you have a pencil case made from plastic sheeting, it fits under Heading 4202 99, which allows for “Other” materials specified, which in this case includes plastic sheeting. However, if the pencil case is made from moulded plastic silicone, things get trickier. Since moulded plastic silicone isn’t listed under the allowed materials in the second part of Heading 4202, it falls outside this category. Instead, it must be classified under Heading 3926, covering “Other articles of plastics.” Missing this distinction could mean paying a higher duty rate under one subheading versus another—an important detail that impacts cost and compliance.

Water Bottle: Insulated or Non-Insulated?

The classification of a water bottle hinges on whether it is vacuum insulated or not. Vacuum insulation, which involves removing air between the walls to prevent heat transfer, would classify the bottle under tariff code 9617. But here’s the catch: double-walled does not always mean vacuum insulated. Without vacuum insulation, the material of the bottle determines its classification.

In the case of a bottle that has a stainless steel outer wall and a plastic inner wall, the bottle is classified under the code 3924900090, which pertains to plastic household goods. It might seem odd to classify a water bottle this way since it’s often used outdoors, but because it is filled at home and can be used there, it fits under this classification. This nuance is easy to overlook but essential for accurate tariff classification.

Geometry Set: A Single Tariff Challenge

A geometry set, comprising a protractor, compass, pencil, eraser, pencil sharpener, and ruler, is a prime example of a product that needs careful classification as a set. According to GRI 3b, a set must meet specific criteria: it must consist of different articles classifiable under different headings, fulfill a particular need or activity, and be packaged for retail sale.

If a geometry set meets all criteria, it’s classified as a single set. The challenge lies in determining the set’s essential character, which usually depends on the most valuable or significant items within it. Here, the protractor, compass, and ruler, all classifiable under Heading 9017, provide the essential character, guiding the overall classification.

These three examples highlight that tariff classification is rarely straightforward. Products like pencil cases, water bottles, and geometry sets involve nuanced decisions that can significantly impact duties and compliance. Our customs classification solution TariffTel supports retailers in navigating the complex decision-making process that goes into the classification of back to school products. TariffTel is designed to get into the detail and is backed by an expert team of classification experts who are on the end of a phone to talk through product challenges.

To set up a demo to see how TariffTel can support your classification, contact us today.

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Here, our Head of Technology Tim Ingram-Smith, outlines the successful practices he sees many organisations adopt to optimise the classification operation.

Know the trade environment

Goods that cross borders not only need to be classified with the correct tariff code to assign duty payments, but also require a customs declarations form. Trade compliance managers have an end-to-end role in managing this process, from the origin of goods, to the delivery of goods to the consumer. They facilitate the points where the goods pass from one jurisdiction to another.

National governments, and supra-national organisations like the European Union, stipulate or negotiate special trade agreements, duty rates, quotas and flat-out sanctions across a whole range of criteria and your goods may be subject to sanctions. It pays to know the whole trading environment you’re operating in.

For each item you need to be sure of its Country of Origin and Country of Manufacture. For example, an electric-corded nail gun coming into the UK from the EU attracts a duty rate of 0%, but if the same products comes from China, it is assigned a 2% duty rate.

Know all the parts of every product

All manufactured goods are composed of constituent parts, likely made of different components, possibly made in different countries.

It’s worth creating a ‘product map’ which shows the raw materials that make up each item. For example, in the UK Trade and Cooperation Agreement with the EU, automotive components which originate outside the UK should be less than 45% of the price of the final vehicle (Source: UK-EU Trade Agreement).

As well as origin of goods, you’ll need to be aware of the InCoTerms that apply. International Commercial Terms are a set of short codes that signal the agreement being called into play when goods cross a border. For example, if your documentation says ‘DDP’ that means ‘Delivered Duty Paid’ which in turn means that the buyer can be sure, and is contractually accepting, that when they take delivery of the items from the transportation agent, that the duty has already been paid. Incoterms are common with big companies across Global Value Chains.

It’s crucial to be aware of the end-to-end journey of your goods from component manufacturer to assembly, transportation and import into destination country. This is where a solution like TariffTel can assist. TariffTel has a Vendor Portal where your suppliers can enter the relevant details about the products they are manufacturing. They know your products best after all!

Plan your paperwork

It’s a good idea to get your paperwork in order before your goods hit the customs queue. There are many questions to be completed on cross-border documentation, many of which can be handled electronically for more advanced countries.

You need to understand what your products are made of, as you may need to answer audit questions around, for example, deforestation rules or animal welfare. Have a read of our top tips for creating a good goods description.

Let’s face it, trade compliance can be complex, and ever evolving. Tariff arrangements don’t stand still and special arrangements and government announcements can happen at any time, whether beneficial to your product set or detrimental. TariffTel keeps business on top of any changes sending alerts whenever the duty changes on an item change, this immediate notification is crucial to ensure continual compliance with regulations. It also pays to keep your ear to the ground with special programs, preferential tariffs and trade agreements.

You can hear more from Tim in this video series from key takeaways from the Customs Compliance Conference.

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Here, we look at a selection of some of the most popular picnic treats, and some more unusual ones, which may cause confusion.

Take a look a more food classifications we unravel on our BBQ blog.

Tariff codes for fresh strawberries

No picnic is complete without a punnet of fresh strawberries and thankfully, classifying fresh strawberries is relatively straightforward. They fall under “Other fruit, fresh – Strawberries” in the tariff book. However, the challenge lies in ensuring the strawberries are indeed classified as fresh and not preserved or prepared, which would alter the tariff code. For fresh strawberries, the tariff code is 0810100000.

Tariff codes for fresh blueberries

For blueberries, the challenge is identifying the exact species. Accurate species identification is crucial since European blueberries, highbush blueberries, and other species each have distinct codes. Misidentification can lead to non-compliance and potential penalties.

Do you know your European from your highbush? Here’s the tariff codes you need to know.
• 0810403000 – European Blueberry – Of Species Vaccinium myrtillus
• 0810405000 – Highbush Blueberry – Of Species Vaccinium corymbosum
• 0810409000 – Not of Species Vaccinium myrtillus or Vaccinium corymbosum

How to classify mixed fresh salad with vinegarette dressing

Typically, fresh vegetable mixtures are classified by the predominant vegetable. However, adding vinegarette dressing reclassifies it as a prepared mixture under heading 2005. Taking account of all ingredients and preparation techniques just highlights how important this extra detail is to determine the correct classification.

The tariff code for prepared Mixed Vegetable Salad is 2005995090

Cheesecake bomb anyone?

For that wow factor at a picnic, how about a cheesecake bomb? This can be complex to classify due to its unique composition. Unlike traditional cheesecakes that fall under heading 1905, this product lacks a biscuit base and includes white chocolate. Therefore, it is more accurately described as a dairy-based dessert under heading 1901.

Pre-Made Sangria Carton

And finally drinks at a picnic? How about Sangria.

Sangria classification is intricate due to its wine content and additional flavourings. Though it may seem to fit under heading 2204 (wine), the WCO Explanatory Notes and Additional Chapter Notes direct it to heading 2205. This example highlights the importance of thorough regulatory knowledge to navigate classification correctly.

Classifying picnic products involves meticulous attention to detail and a deep understanding of trade regulations. Thankfully, our TariffTel solution is designed to get into the detail and support you in determining the correct tariff code every time.

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You may think that swimwear is swimwear, how many varieties can there be. A lot, let us tell you.

Here, we dive into the specifics of determining the correct tariff codes for various swimwear items, focusing on bikinis and swim shorts for men.

If you’re interested in the classification of other Summer products, take a look at our camping blog which breaks down how to classify other popular Summer items.

Bikini sets: Clear waters for classification

Let’s first take the example of a complete bikini set, consisting of both the top and bottom. This set falls under the category of swimwear in Chapter 6112.

According to the World Customs Organization (WCO) explanatory notes, swimwear includes “one piece or two-piece bathing costumes, swimming shorts, and trunks, whether or not elastic.” Therefore, a bikini set made from knitted fabric (87% Polyamide and 13% Elastane) fits snugly into this classification. The appropriate tariff code for such a set is 6112419000, with a duty of 12%.

Solo bikini tops: A different tide

Classification becomes trickier when dealing with bikini tops sold separately. A bikini top with defined cup definition, even if crafted from the same fabric as a complete set, does not qualify as swimwear under Chapter 6112. Instead, it is classified as a brassiere under tariff code 6212109000, attracting a duty of 6%. The key differentiator here is the design element: if the top is designed to mold and support the bust with defined cups, it falls into the bra category.

Similarly, a bikini top without defined cups also does not make the cut as swimwear. Lacking the necessary features to be classified as a bra, this item is categorised under “Other Garments” with tariff code 6114300000, subject to a 12% duty. This distinction is crucial for importers to avoid misclassification.

Bikini bottoms: Smooth sailing

In contrast, bikini bottoms sold separately can still be classified as swimwear. They fall under the same tariff code as a complete bikini set (6112419000) with a 12% duty. The WCO notes clearly state that swimwear includes trunks, which by interpretation and BTI rulings, extends to bikini bottoms. This provides a clear and consistent classification path for these items.

Swim shorts: Navigating the details

Classifying swim shorts presents its own set of challenges. For instance, swim shorts with non-fastening pockets, despite having an inner brief and elasticated waistband, do not qualify as swimwear under Chapter 6112. Instead, they fall under men’s shorts with tariff code 6203439000, attracting a 12% duty. The UK’s Tariff Garment Guide specifies that for swim shorts to be classified as swimwear, pockets must have a firm fastening system like zippers or Velcro.

On the other hand, swim shorts that meet these criteria, featuring zip fastening pockets, do qualify as swimwear. These shorts are classified under tariff code 6211110000, with a 12% duty, reflecting their compliance with the detailed requirements set out in the UK guide.

Precision classification is key

In the realm of customs classification, precision is key. Understanding the detailed guidelines and explanatory notes ensures accurate tariff code assignments, helping avoid costly errors. For importers dealing with swimwear, grasping these nuances can streamline the process and ensure compliance.

At TariffTel, we have delved into the intricate terms associated with products, and designed our Item Types in our customs classification solution to be user-friendly. We eliminate the need for extensive research when classifying and reduce the risk of misclassification. This ensures your classification is accurate, done quickly and that you adhere to regulatory standards.

Want to understand more about classifying Summer products? Read our BBQ blog

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We see firsthand how critical these codes are for businesses of all sizes. Our TariffTel solution has been designed specifically to make the classification process streamlined and simple to navigate – classification needn’t be a huge burden for businesses.

In this blog, we look at why every product needs a tariff code, the purpose of a tariff code, some common terminology used and also the consequences of getting it wrong.

Why tariff codes matter

Tariff codes are the backbone of international trade. They classify goods in a standardised manner, ensuring compliance with international trade regulations.

Elizabeth Davies, TariffTel Custom Systems Manager, says, “Accurate tariff codes are crucial for determining the correct duties, taxes, and regulations applicable to a product. It’s a non-negotiable in trade today, businesses have to get their tariff codes right every time or they face some quite severe repercussions.”

The job of a tariff code is to determine the tariff rates that apply to the goods, as well as to facilitate trade by enabling customs authorities to identify and track shipments.

But, there are a few variations of a code you may see which can make things confusing. Often you will come across terms such as HS codes, HTS codes, and Tariff/Commodity Codes.

Common tariff terminology explained

What is the difference between the different terms?

HS Codes: HS codes are six-digit codes that classify goods based on their nature, form, and composition. The first two digits of a HS code identify the chapter, the next two digits identify the heading, and the final two digits identify the subheading. Read more about HS codes.

Tariff Codes/Commodity Codes: Tariff codes or commodity codes are classification codes used to determine the customs duty that is applied to a particular product. These codes are ten digits long for imports, eight digits for export, and are used to identify specific products. The HS code makes up the first six digits whilst the final four digits are unique to each country’s tariff system, and they provide additional detail that is specific to that country’s classification systems.

HTS Codes: In the US, the Harmonised Tariff Schedule (HTS) is maintained by the U.S. International Trade Commission (USITC) and is used to determine the tariff rates that apply to goods imported into the United States. The WCO provides the first six digits and the HTS US provides the final four for additional detail. Each country maintains its own Harmonised Tariff Schedule (or similarly named).

What happens when a tariff code is wrong?

A common misconception is that there’s minimal consequences when a tariff code is wrong. The opposite is in fact true. A misclassified product can have far-reaching consequences across a business’ entire supply chain from border delays and fines to damaging relationships with important suppliers.

In our own research, we found that 2 in every 5 tariff codes used is incorrect. This is a staggering figure when you think of the thousands of businesses this applies to.

One of the biggest repercussions of incorrect tariff codes is the under-or-over payment of duty. If a business is found to be paying the wrong amount, they may have to repay the shortfall that should have been paid to customs authorities in the first place. Going through the audit process is complex and time-consuming which takes up a vast amount of resource. Additional costs like conducting internal audits, hiring customs experts or consultants and possibly engaging legal support all add to the complexity of rectifying these situations.

Penalties and fines can be imposed by HMRC as a result which can put a strain on company finances.

Read more about what happens when tariff codes are wrong here.

Support for getting tariff codes right

At TariffTel, our combination of advanced customs data and our unrivalled team expertise creates a precision solution for every business prioritising trade efficiency and growth. Our easy-to-use solution automates the process and puts data at your fingers tips to make classification easier.

We think classification should be made simpler for everyone and have created many resources on our website and blog. Our latest guide is designed to help you understand what data you need about your products, to get the correct tariff code. We’ve called it ‘The devil’s in the data’ and there’s a webinar to watch in partnership with The Institute of Export & International Trade, and a helpful downloadable guide. Get access here.

If you want to find out more about a tariff code solution that’s right for your business or want to learn how your business could benefit from TariffTel, get in touch with our team.

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Today’s camping products come in a variety of forms and functionalities, which, while fantastic for outdoor enthusiasts, can be a challenge for those tasked with classification. Here, we delve into some camping examples to illustrate this complexity and provide some top advice along the way.

What’s the tariff code for a tent?

Choosing the right tent can be quite the adventure with so many options available, especially when considering play tents for young children. These versatile play tents can be used both indoors and outdoors, and this is an important element to consider when determining your tariff code.

If you are using the Tariff Book to classify a tent, you’d typically head straight to Chapter 6306 – Tents (including temporary canopies and similar articles), which carries a duty rate of 12%. But there are some important exclusions tucked away in the Chapter Notes that you need to be aware of.

The Chapter Notes to 6306 specifically excludes certain items, referencing articles from Chapter 95, which includes toys, games, sports equipment, and nets. While these notes don’t explicitly mention “tents” the World Customs Organisation (WCO) Explanatory Notes do. They clearly state that play tents for children, whether used indoors or outdoors, are excluded.

So, a children’s play tent that can be used both inside and outside should actually be classified under Chapter 9503. If it’s made of polyester, the correct tariff code would be 9503009900, which has a duty rate of 0%. This is a significant difference when compared to using Tariff Code 6302220000, which has a 12% duty rate.

To avoid these kinds of misclassifications, TariffTel can be incredibly helpful here. TariffTel provides specific item types for camping tents and outdoor play tents, complete with guidance notes that explain the relevant exclusions from the Chapter Notes and the WCO Explanatory Notes. This ensures you always get the tariff code right and avoid unnecessary duty payments.

Classifying tools

When it comes to pitching a tent, a mallet is a must-have tool. Trying to secure tent pegs by hand can be an impossible task! Imagine you have a mallet with a wooden handle and a rubber head. How would you classify this for customs duty purposes?

Referring to the tariff book, you might look at several chapters; Chapter 4417 covers tools of wood with 0% duty, Chapter 4016 includes articles of vulcanized rubber with a 2% duty, and Chapter 4017 deals with articles of hard rubber, which also have a 0% duty. As you can see, it’s easy to end up with the wrong code.

For composite goods made up of different materials, you need to apply the General Rules of Interpretation (GRI’s). Specifically, GRI 3(b) requires us to determine which material gives the mallet its essential character. In this case, we need to consider the role of each material in the mallet’s use. The rubber head is the part that strikes the tent peg into the ground (working edge), making it the “essential character” of the mallet. The correct classification for the Mallet would fit to either Chapter 4016 or 4017 dependant on the type of rubber, Vulcanised or Hard Rubber.

Without a solid understanding of the GRI’s, it’s all too easy to choose an incorrect tariff code and either underpay or overpay on duty. Fortunately, with TariffTel, the GRI’s are clearly explained within our Item Type selection process, ensuring accurate classification every time.

Classifying multiple product sets

Often, teams are asked to classify a multi-tariff set that contains various different products. Sets are not always easy to get right and can lead to misclassifications and significant over or underpayments of duty. Here’s an example of a cooking utensil set with storage bag which contains the following items:

Cooking Utensil Set with Storage Bag

– Knife Stainless Steel
– Tongs Stainless Steel
– Scissors Stainless Steel
– Barbecue basting brush – Stainless Steel/Plastic

– Ladle Stainless Steel
– Chopping Board (Plastic Silicone)
– Storage Bag/Case with specific slots to hold each utensils – Plastic Sheeting

When classifying sets you need to follow the GRI’s rule 3b to firstly determine if the set meets the rules of classifying to a single tariff or multi tariff set. There are three key rules that need to be met in order to classify as a single tariff set, and then you will need to determine which product in the set is to be used for the single tariff classification and you can then apply GRI rule 3c.

This set meets the rules of GRI 3b to be classified as a single tariff set because:

– The set consists of at least two different articles which are classifiable in different headings
– The set is put together to meet a particular need or carry out a specific activity
– The set is put up for sale in a manner suitable for sale directly to users without repackaging

Now that we have determined this can be a single tariff set, we must now consider the essential character of the set, this may be determined by factors such as value, quantities, importance etc. If no single product can be determined as an essential character, we have to follow rule 3c and classify to the product which occurs last in numerical order. Based on the below classifications, you can see that dependant on the outcome of rule 3c, the tariff duty can vary significantly so it is important to follow the rules carefully.

Knife Stainless Steel – 8211 – 8% Duty
Tongs Stainless Steel – 8215991000 – 8% Duty
Scissors Stainless Steel – 8213 – 0% Duty
Barbeque basting brush – Stainless Steel/Plastic – 9603 – 2% Duty
Ladle Stainless Steel – 8215 – 8% Duty
Chopping Board (Plastic Silicone) – 3924 – 6% Duty
Storage Bag/Case – Plastic Sheeting – 4202921900 – 9% Duty

How technology supports customs classification

For retailers navigating the camping season, an effective classification system can save time and prevent costly errors.

At TariffTel, we have delved into the intricate terms associated with products, and designed our Item Types in our customs classification solution to be user-friendly. We eliminate the need for extensive research when classifying and reduce the risk of misclassification. This ensures your classification is accurate, done quickly and that you adhere to regulatory standards.

Want to understand more about classifying Summer products? Read our BBQ blog

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The variety in BBQ products is vast, ranging from traditional grills to unique, high-tech smokers and accessories, not to mention an array of food and alcohol products that will impress guests. This diversity, while fantastic for consumers, can be a hurdle for those tasked with classification. Here, we look at some common BBQ products which may throw up a few queries when classifying and give our top tips to getting accurate tariff codes with our TariffTel solution.

Always check the chapter notes

Classifying products accurately often involves understanding when certain products are excluded from headings that might initially seem correct. A product might appear to fit perfectly under a specific code, but due to a small feature noted in the section or chapter notes, it may be excluded.

For instance, in the classification of meat products, there is a difference between a raw ribeye steak with a packet of seasoning and an already seasoned raw ribeye steak.

If we viewed the classification of a chilled, raw, boneless ribeye steak with a packet of seasoning, the tariff code would be 0201300039 (Meat of bovine animals, fresh or chilled), with a duty rate of 12.00% plus £253.00 per 100 kg. However, if the same steak comes with the seasoning already applied, the classification changes to tariff code 1602501090 (Prepared or preserved meat, of bovine animals), with a duty rate of £253.00 per 100 kg.

This difference arises due to a World Customs Organisation (WCO) Explanatory Note which specifies that products “covered with batter or breadcrumbs, truffled or seasoned” are excluded from Chapter 02. Additionally, according to the General Rules of Interpretation (GRI), specifically GRI 3B, the packet of seasoning with the raw ribeye steak does not require a separate tariff code, as the product is classified according to the essential character of the ribeye steak.

Tariff codes for alcohol

A similar scenario occurs with the classification of beverage products, such as plain vodka versus citrus-flavored vodka, both in 750ml bottles with 37.5% ABV. Plain vodka is classified under tariff code 2208601100 with a duty rate of 0%, whereas citrus-flavored vodka falls under tariff code 2208701000, also with a duty rate of 0%.

The classification difference is due to a WCO Explanatory Note for Liqueurs, which defines them as “spirituous beverages to which sugar, honey, or other natural sweeteners and extracts or essences have been added.” This example illustrates how a minor change in a product can impact its classification. Even though the duty rate remains the same, customs compliance involves more than just the payment of duties, it ensures accurate product classification and adherence to regulations.

Classifying kitchen and BBQ utensils – Spatula

Classifying utensils, such as a spatula with a wooden handle (60%) and a stainless steel head (40%), can be complex. You might consider classifying it under tariff code 4419900000 (Tableware and kitchenware, of wood) with a duty rate of 0% for the wood component, or 7323930090 (Table, kitchen or other household articles, steel) with a duty rate of 0% for the stainless steel component. However, both classifications would be incorrect.

This spatula, made of multiple materials, is considered a composite product, and we therefore need to determine the essential material. Using the General Rules of Interpretation (GRI’s), specifically GRI 3B, we determine that the main characteristic of the product is the working edge. In this case, the spatula is primarily a hand tool used to turn food over and remove it from the BBQ, and a more appropriate Chapter is available further down the Tariff. It should, therefore, be classified under tariff code 8215991000 (Spoons, forks, ladles, and similar kitchen or tableware) with a duty rate of 8%. Misclassification could result in underpayment of duties and potential fines from HMRC.

How technology supports customs classification

At TariffTel, we have delved into the intricate terms associated with products like, and designed our Item Types in our customs classification solution to be user-friendly. We eliminate the need for extensive research when classifying and reduce the risk of misclassification. This ensures your classification is accurate, done quickly and that you adhere to regulatory standards.

Interested in how to classify more food products? Read our recent food classification blog to see more complexities in classification.

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At the heart of this process lies the goods description—a concise yet comprehensive, and legal, description of the item being classified. Getting the information needed for customs classification can sometimes prove a challenge as data can be held in numerous sources or with your suppliers. But it’s a crucial aspect of classification to address that will lead to accurate classification and improved compliance.

Here’s our guide to navigating this important aspect of classification.

Six steps to the perfect goods description

Be specific, yet concise: The key to a clear goods description is finding the balance between specificity and brevity. Include essential details such as material composition, function, and intended use, while avoiding unnecessary jargon or superfluous information. For example, instead of simply stating “fasteners,” specify the type (e.g., screws, bolts) and material (e.g., stainless steel, brass). This is because tariff codes in many cases are classified according to material type.

Use standardised terminology: Consistency is key when communicating with customs authorities worldwide. Use standardised terminology and the central Harmonised System (HS), from which all tariff codes are based, to ensure you follow the guidance provided. It’s also important to keep up to date with changes to the Harmonised System which can happen regularly. Our TariffTel solution provides automatic notifications to let you know when your codes have changed, giving you time to update them before shipments leave with the incorrect paperwork in place.

Provide visual aids: Sometimes, words alone are not enough to accurately describe complex products. That’s why we introduced the image functionality into TariffTel to enable businesses to upload and store product images which can be accessed centrally to all who need to see them. These visuals can help customs officials better understand the nature and characteristics of the goods, reducing the risk of misclassification.

Include technical specifications: For products with unique or specialised features, it’s a good idea to include technical specifications such as dimensions, weight, and performance metrics. These details enhance the clarity of the goods description, make sure the correct code is assigned and you’re paying the right duties and taxes.

Consider regulatory requirements: Certain products may be subject to specific regulatory requirements or restrictions based on factors such as health and safety, fat or sugar content in food items, or environmental impact in the case of wood used in homewares. Ensure that your goods description accurately reflects these additional considerations to avoid delays or penalties during customs clearance.

Update regularly: Nothing in trade stands still and it’s likely that the composition of your products could change over time, especially if they are best-sellers and you have sold the product for a while. It’s a good idea to regularly review and update your goods descriptions to reflect any modifications or enhancements to your product line. This proactive approach will keep you compliant with evolving trade regulations.

For more insight into how to classify goods correctly, take a look at some of our sector specific guides on classifying food and homewares.

A customs classification solution like TariffTel can help streamline the process of classification and support your team in creating accurate goods descriptions which lead to the correct tariff code. TariffTel’s combination of customs data and our unrivalled team expertise create a precision solution for every business prioritising trade and growth.

If you want to find out more about TariffTel, please contact our team for a demo.

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On the 12th June 2024, at 2-3pm, we will be hosting a must-attend webinar with the Institute of Export & International Trade entitled ‘Customs classification – the devil’s in the data’.

Sign up to attend the webinar: The Devil’s in the data

This free one-hour webinar will introduce the importance of having detailed and accurate data to hand when classifying goods and will explain how businesses can ensure best practice in classification to avoid shipment delays and possible fines.

Our TariffTel Customs Systems Manager, Elizabeth Davies, will be hosting the webinar alongside the IOE&IT’s Lyn Dewsbury.

Together they will cover the following key areas:

– What customs classification is and why it’s important
– Information used to classify goods
– Importance of record-keeping and best practice for storing goods data
– Digital solutions for managing the use of goods data across the supply chain
– Upcoming developments in customs classification including Digital Product Passports and the Single Trade Window

Sign up to attend the webinar here.

Why is data important in classification?

Data management is one of the biggest challenges many companies face across their supply chain. Customs classification requires meticulous attention to detail, with accurate and up-to-date information about a product being paramount. Ensuring the seamless flow of data across various systems and platforms while maintaining data integrity can be a daunting task for many businesses.

The master data held on each product can vary significantly and gathering it in the first place can be tricky. You may be holding this data on spreadsheets which you need to manually maintain, and it may be recorded ad hoc from the scant information provided by your suppliers or on documentation. This can all lead to data integrity challenges. When you improve this data capture process at the start of classification using a customs classification solution that makes data capture and storage easy, many of the challenges go away.

TariffTel is a unique system, trusted by businesses such as Boohoo, Primark and ASDA, for its innovative approach to engaging with your suppliers. By gathering essential product data at source with suppliers who know your products best, the initial data used to classify can be verified and relied upon. The ‘make-up’ of a product, be it fabric composition, fat or sugar content with food products or metal type with car parts, are all crucial pieces of information that need to be shared and regularly updated on your customs classification system.

Tune into the webinar to learn best practice skills in classification.

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