From the 1st January 2021, all businesses that shipped goods between Great Britain and Northern Ireland needed to follow a new set of customs and tax rules which meant significant changes to the way they had previously run their business. This included one of Britain’s much loved, and popular, food retailers, M&S.

How M&S met the challenge of increased regulation from BREXIT

M&S addressed the challenge head on by implementing TariffTel to manage all food classification. TariffTel provided the streamlined, accurate and quick approach to classification that was needed at this time. Working together, we ensured M&S’s much- loved food and drinks products continued to cross borders smoothly through BREXIT and that consumers were unaffected.

Success was down to TariffTel’s focus on prioritising compliance and accuracy in the customs classification process. Understanding food classification is complex and specialised but having the right classification solution, backed by an expert classification team, means the challenges can be overcome. Complexities often come down to variations in a product’s composition which can shift a classification within a Heading or move it across Chapters. Further difficulty comes about when interpreting the tariff between different regions. This can lead to the same product having a different tariff code based on the import region which in turn makes it challenging for businesses to ensure compliance across multiple markets.

More often than not, the sheer volume of information needed to make an accurate classification can be hard to come by. The specific and varied challenges of food classification are discussed in greater detail in this dedicated food classification blog.

M&S further met the challenge of BREXIT by engaging in the process of an AEO application which requires businesses to prove their systems are robust and fully compliant with customs regulations. We’re proud to say that TariffTel was a part of this successful application.

Why TariffTel?

TariffTel has a unique method to classification. Not only does it integrate with a business’ internal systems, it also leverages a business’ suppliers in the classification process allowing them to input key data about products for verification. It captures all the data needed including product characteristics such as sugar and fat content, to enable the correct tariff code to be assigned. As a result, M&S is assured it is paying the correct duty on every product, and there is no under or over-paying which can often happen.

Working collaboratively, TariffTel’s customs experts are able to assist with classifying even the most complex of food and drink products including, for example, a vegan composite ready meal, made primarily of mycoprotein, with only trace elements of vegetables.

The success of implementing TariffTel at M&S

This level of digital transformation provides M&S with a framework for the future. TariffTel not only streamlined classification processes to speed up the time it had previously taken to classify a product (with classification speeds increasing 5 times), but it ensured M&S had the correct tariff code every time, allowing them to gather documentation relating to the code and be compliant.

Shipment delays due to incorrect classification codes were avoided and the team were assured that they were paying the correct duty rates on all products. The new system enabled M&S to adapt and maintain its trading alliances with suppliers and stores across Northern Ireland and deliver the same high-quality service and smooth- running operation it always had.

Elizabeth Davies, TariffTel’s Customs System Manager, says, “This solution was transformative for M&S and ensured they managed the introduction of new BREXIT regulations smoothly, and without disruption to customers. TariffTel’s tariff code accuracy is unbeatable. When high standards of compliance are crucial in your organisation, businesses need a solution that guarantees accuracy.”

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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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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In this blog we explain what steps food retailers and manufacturers can take to introduce a streamlined and compliance-first approach to food classification. We look at learnings from our customer M&S who we have supported with food classification for several years, and also explore the classification process we go through on two product examples.  

Understanding the complexity of food classification 

The sheer variety of food items, coupled with the intricate nuances of international trade regulations, often complicates the   classification process when it comes to food.

The following factors all play a crucial role in determining the correct tariff code:

• Ingredient composition
• Processing methods
• Packaging
• Intended use

Having worked closely with M&S and their food department for several years, we understand how seasonal events such as Christmas and Easter can introduce even more complexity when getting food products on shelves in time for celebrations. Does anyone remember the M&S white chocolate carrot made from real gold leaf? Yes, we even classified that! 

The margin for error is small when it comes to food products.

Variations in the product composition can shift a classification within a Heading or move it across Chapters. What makes things more complicated with food products is that the information used to determine classification is often not held in one location, but instead across multiple data sources with differing levels of accessibility. 

When you do have all the information needed to classify a food product, often there is further difficulty due to the differences in interpretation of the tariff between regions. This can lead to the same product having a different tariff code based on the import region which in turn makes it challenging for businesses to ensure compliance across multiple markets.

Further complication also can arise from the sheer amount of information that must be consulted in order to be fully compliant. Add in the fact that the data is not held in one central, freely accessible location, but instead across multiple, disparate sources, some of which are only accessible for a fee, and it can be difficult to be certain of your classification.

This is where it becomes crucial that the team classifying your goods has a thorough understanding of the food regulatory environment, or you have access to classification experts like our TariffTel specialists, who can provide much needed advice and support. 

Two examples of classifying food products 

Example One: A large, solid chocolate egg, filled with fruit and nuts.  

Classifying products requires an understanding of when certain products are precluded from headings that might sound correct. A product may sound like it fits perfectly to a code, however, within the section/chapter notes, due to a small feature, it may be precluded. Further increasing this difficulty is the fact that these rules and restrictions are held in different places and formats, and require work to research and understand them.  

For example, Heading 1806 covers “Chocolate and other food preparations containing cocoa”, and, for this example, we would skip over the first three subheadings which do not fit, selecting “Other” instead. The first option is “Chocolate and Chocolate Products,” followed by “Chocolates (including pralines), whether or not filled”, and, within the chapter notes, it explains that for the codes within this subheading, 1806.9011.00 and 1806.9019.00, they do not include products solely of one type of chocolate. Our product is only of one type of chocolate, and is therefore precluded from this heading, however, if this product did contain more than one type of chocolate, it would still not be accepted under this subheading. The EU Explanatory Notes explain that these subheadings only cover products “capable of being consumed in a single mouthful” and given the size of our product, it does not meet this requirement.  

Accepting that this product is excluded from “Chocolates (including pralines), whether or not filled” we will look at the “Other” subheading which follows. There are two options available:

• “Filled” and “Not Filled,” and while our product is filled with fruit and nuts, this would not be accepted under the “Filled” subheading
• The WCO Explanatory Notes define “Filled” as containing a filling such as a nougat, caramel, cream, fruit paste and similar, while excludes products which are solid chocolate with cereal, fruit or nuts embedded throughout the chocolate
• This Explanatory Note is referring to a different Subheading, 1806.31, but in a separate EU Explanatory Note, it is applied mutatis mutandis to the heading we are looking at for this product.

Within TariffTel we have researched and understood these areas and built our Item Types in a way that is easily understandable for users, with clarifying information that guides them in their selection, removing the need for unnecessary hours of research or accidental misclassification. 

Example Two: The difference between a beef lasagne ready meal, and a beef Bolognese ready meal with spaghetti pasta 

There are many rules that surround the classification of food products in the tariff, particularly relating to the preparation of meat. Here we highlight an exception to the broadly understood rule that a product is generally classified as a ‘preparation of meat’ if it contains greater than 20% by weight of meat.  

• If we were to classify a spaghetti Bolognese ready meal, which has greater than 20% cooked beef, it would be considered a ‘preparation of beef’ under tariff code 1602.5095.90 – duty rate 16.60%
• However, if the percentage of beef in the product dropped below 20%, the classification would likely fall to the pasta as the essential character following the beef, generating the code 1902.3090.90 – duty rate 6.40%+9.70EUR/100KG.

Conversely, if we looked at a beef lasagne ready meal:

• The percentage of beef is not considered and instead this would be classified as a stuffed pasta under heading 1902.2091.90 – duty rate 8.30%+6.10EUR/100KG
• Part of this information is included in the Chapter notes to heading 1902 stating that “stuffed products of heading 1902” are excluded from the “Greater than 20% meat” rule, however, what is not included is that the WCO Explanatory Notes highlight, stuffed pasta “may be fully closed (for example, ravioli), open at the ends (for example, cannelloni) or layered, such as lasagne.”
• It would be easy to make the mistake that lasagne is not stuffed and select the incorrect tariff code based on that information, leading to errors in classification. 

How technology streamlines food classification 

In the face of these challenges, a customs classification solution like TariffTel offers a lifeline for businesses seeking to streamline their food classification processes and achieve greater accuracy with tariff codes. TariffTel acquires essential product characteristics and product data directly from your suppliers and provides an easy-to-use centralised dashboard that guides you in making the correct classification.

TariffTel and food classification

Within TariffTel we have researched and understood the complex terms relating to food products and built our Item Types in a way that is easily understandable for users, removing unnecessary hours of research or accidental misclassification. Food retailers and manufacturers are able to quickly assign tariff codes with precision and confidence. This mitigates the risk of errors and ensures compliance with regulatory requirements.  

Unlike other solutions, TariffTel ensures businesses are up-to-date with tariff code updates as soon as they change centrally at the WCO. This key feature is valuable for businesses trying to navigate the complexities of food classification and minimise the risk of custom penalties and shipment delays knowing the codes they use are the very latest. 

Whether it’s distinguishing between different types of cheese or determining whether a product is further prepared or not, TariffTel excels in handling the intricacies of food classification and is trusted by leading food retailers to accurately classify a vast range of food products on a daily basis.  

Get in touch with our expert team if you are looking for greater accuracy and compliance in your food classification.  

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