retail Archives - https://www.tarifftel.com/tag/retail/ Tue, 08 Oct 2024 09:07:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://www.tarifftel.com/wp-content/uploads/2024/05/cropped-cropped-android-icon-48x48-1-32x32.png retail Archives - https://www.tarifftel.com/tag/retail/ 32 32 Adding some sparkle to Christmas classifications https://www.tarifftel.com/blog/adding-some-sparkle-to-christmas-classifications/ Thu, 03 Oct 2024 12:45:36 +0000 https://www.tarifftel.com/?p=7606 Classifying Christmas products can add a bit of sparkle to anyone’s day. From costumes to Christmas tree decoration and table ornaments, the vast range of seasonal items usually brings with it joy, as well as a bit of apprehension as to what specific classification challenges each product could throw up! Properly assigning the correct tariff […]

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Classifying Christmas products can add a bit of sparkle to anyone’s day. From costumes to Christmas tree decoration and table ornaments, the vast range of seasonal items usually brings with it joy, as well as a bit of apprehension as to what specific classification challenges each product could throw up!

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.Father Christmas costume

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…”

snow globeTherefore, 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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Classification as easy as ABC…or is it? https://www.tarifftel.com/blog/classification-as-easy-as-abc-or-is-it/ Tue, 03 Sep 2024 12:55:19 +0000 https://www.tarifftel.com/?p=7586 The kids are going back to school and with them a myriad of equipment, uniform and undoubtedly snacks to keep them fueled and ready to learn. 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 […]

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The kids are going back to school and with them a myriad of equipment, uniform and undoubtedly snacks to keep them fueled and ready to learn.

back to school

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.pencil case

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.water bottle

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

geometry setA 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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