https://www.tarifftel.com/ Tue, 29 Oct 2024 10:13:10 +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 https://www.tarifftel.com/ 32 32 The importance of data in customs classification https://www.tarifftel.com/blog/the-importance-of-data-in-customs-classification/ Tue, 29 Oct 2024 10:13:10 +0000 https://www.tarifftel.com/?p=7710 Accurate data is the backbone of successful customs classification, ensuring that businesses can correctly assign Harmonised System (HS) codes to their products and remain compliant with international trade regulations. Without reliable data on your products, including their composition, use, origin, and other technical specifications, companies risk costly misclassifications that could result in penalties, delays, and […]

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Accurate data is the backbone of successful customs classification, ensuring that businesses can correctly assign Harmonised System (HS) codes to their products and remain compliant with international trade regulations. Without reliable data on your products, including their composition, use, origin, and other technical specifications, companies risk costly misclassifications that could result in penalties, delays, and even reputational damage.

The devil really is in the data. Especially when we’ve found through our analysis that 2 out of every 5 HS codes used today are incorrect.

Here, we look at three data challenges many businesses face when classifying their goods, and how to mitigate them with the right approach and technology system like TariffTel in place. We also look at what data matters in classification and how incoming regulation from the EU is having an impact on what product data needs to be made available by manufacturers and suppliers.

Three common data challenges in classification

In modern supply chains today, data is often scattered across legacy systems, making it difficult to obtain a full picture of what makes up each product. This means that when classifying goods, teams are often basing their classification decisions on outdated or incomplete product information, which directly impacts compliance and puts their business at risk.

Here are three of the most common data challenges found in classification today.

Data accuracy and integration
Precise customs classification relies on accurate product data drawn from a range of sources, often found across legacy systems or disparate data platforms. Key product details like descriptions and materials must be aligned precisely with the appropriate HS codes. Yet, businesses often base their classification on outdated or incorrect product information—sometimes provided by suppliers—resulting in misclassifications and compliance risks.

This is particularly complex when classifying food products, not least because of the sheer volume of information that must be consulted in order to be fully compliant. This visual highlights the extra data people need to classify any food item correctly including nutritional values.

 

 

 

Frequent regulatory updates
Trade regulations and tariff codes undergo frequent updates, meaning businesses need to stay informed about changes. Misclassifying products due to outdated information can lead to penalties, fines, or shipment delays. To stay compliant, businesses need to be vigilant about regulatory changes and track and enforce any updates quickly across their business. They need a process in place that ensures their systems are up to date with the very latest changes, as and when they happen.

As the classification process depends on specific information about products, such as composition, use, origin, and other technical details, incoming legislation can influence what data suppliers and manufacturers need to make available for food retailers to be compliant. For example, the EU Deforestation Regulation (EUDR) will require companies to share the origin of certain raw materials including wood, cattle, cocoa, coffee, oil palm, rubber and soy, to prove that these goods do not originate from recently deforested areas or contribute to forest degradation. The aim is to limit the EU’s impact on global deforestation and biodiversity loss, an important step in recognising that the EU marketplace is the world’s largest contributor of deforestation, after China. This legislation was introduced in June 2023, and was due to become mandatory in December 2024, however, in a significant move, the EU has proposed a one-year delay which means, if approved, the regulation will now come into force from 30th December 2025.

Limited resources and manual processes
Customs classification demands specialised knowledge, yet many companies lack dedicated expertise in-house or rely on manual processes, which can be slow and prone to errors. These mistakes often arise from misinterpreted or overlooked details. These errors usually come about when explanatory notes are not consulted or misinterpreted. Outsourcing classification to TariffTel can streamline operations and reduce the workload as well as ensure that all additional sources, such as explanatory notes, are consulted and considered appropriately. Businesses also have access to our TariffTel team of classification experts who are on hand to solve the most complex of queries.

Here’s two complex food queries our team helped resolve which highlight how crucial accurate product data is when determining the correct HS code.

Accurate data is indispensable in customs classification, serving as the foundation for compliance and trade efficiency. Solutions like TariffTel automate and streamline the classification process, reducing the risks of manual data input which can lead to inaccurate and incomplete data at the start. With clear, accurate data, companies are better positioned to assign HS codes correctly, reduce classification errors, and navigate compliance with ease.

Find out more about TariffTel by contacting our team today.

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Is classification a trick or treat this Halloween? https://www.tarifftel.com/blog/is-classification-a-trick-or-treat-this-halloween/ Mon, 28 Oct 2024 10:35:20 +0000 https://www.tarifftel.com/?p=7705 Classifying Halloween products can inadvertently cause a few scary frights. Largely down to the fact that the definition of what is considered a ‘long standing traditional’ article associated with Halloween is difficult to pin down. There’s no ambiguity over many of the obvious products we all usually associate with Halloween, such as bats, spiders, ghosts, […]

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Classifying Halloween products can inadvertently cause a few scary frights. Largely down to the fact that the definition of what is considered a ‘long standing traditional’ article associated with Halloween is difficult to pin down. There’s no ambiguity over many of the obvious products we all usually associate with Halloween, such as bats, spiders, ghosts, Jack – O – Lanterns, pumpkins and monsters, but customs classification—particularly in the EU—follows strict criteria that can be surprisingly limiting.

Here, we take a look at what frightening products fall in and out of Halloween classification and how to avoid being spooked this year!

Demystifying festive articles for Halloween

The EU’s classification guidelines under Heading 9505 emphasises that Halloween items must be for decorative use during a specific time of year and should not have utilitarian purposes. Interestingly, the EU Explanatory Notes specifies that only “artificial Halloween pumpkins” (smiling or otherwise) are considered Halloween articles under 9505.

Other icons of Halloween—such as ghosts or witches—are notably absent from this classification, leading to challenges when sorting out items that fall into this gray area. 

In cases where there is a mixture of multiple designs present, with some meeting the long-standing traditional Halloween design requirements and some not, it’s important to consider which design predominates. For example, in the case of a sheet containing Halloween stickers, the dominating sticker is key to deciding whether it qualifies as a Halloween article or not. If the sheet only contains Jack-O-Lantern style carved pumpkins, it is classifiable in Heading 9505, whereas if it’s mainly made up of cats and witches’ hats then that would be classifiable as stickers of Heading 4911. If these designs were mixed, and there were more pumpkins present on the sheet than the other designs, then this remains classifiable in Heading 9505, as the essential character is pumpkins which are accepted Halloween designs.

Classification conundrums: The case of the pumpkin

In the EU, a pumpkin’s Halloween spirit isn’t in its shape alone; to be a Halloween pumpkin it must include a carved face or Halloween decorations to be classifiable as a true Halloween product. Without those characteristics, an otherwise decorative pumpkin may not qualify for Heading 9505 and might instead be classified by its material and construction.

If the product were simply an ornamental pumpkin of textile material, for example, the product would likely be classified within Heading 6702, provided that it meets the requirements of that Heading. In this case, that means that the product resembles the natural product and is made by binding, glueing or assembling various parts by fitting them into one another, or similar methods.

It always pays to be specific on the exact product details when classifying, Halloween is no exception.

Classification variances across borders

The interpretation of what makes a Halloween product distinctly part of the Halloween festivities is not universal and can vary country to country.

The US interpretation of what constitutes a Halloween article differs to the EU. This is apparent in US rulings which have classified articles depicting motifs associated with Halloween, such as witches, cats or ghosts, under Heading 9505. Such articles would not be classified in the same way for the EU.

For customs classification, the essential character of Halloween is more than skin-deep—it’s all in the detail. So, before you label your spooky imports, double-check their festive credentials.

Whether you’re classifying costumes, pumpkins, or any other seasonal decoration, 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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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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How M&S Food introduced a cost-saving approach to customs controls with TariffTel https://www.tarifftel.com/blog/how-ms-food-introduced-a-cost-saving-approach-to-customs-controls-with-tarifftel/ Thu, 12 Sep 2024 13:10:47 +0000 https://www.tarifftel.com/?p=7596 Food and drinks goods are notoriously hard to classify because of the complex nature of their make-up, extensive ingredients list, varying production methods and different packaging options. When BREXIT arrived, it brought a raft of new regulation and procedure to retailers’ doorstep to further complicate things, particularly impacting those in the food and drink industry. […]

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Food and drinks goods are notoriously hard to classify because of the complex nature of their make-up, extensive ingredients list, varying production methods and different packaging options. When BREXIT arrived, it brought a raft of new regulation and procedure to retailers’ doorstep to further complicate things, particularly impacting those in the food and drink industry.

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 food tariff codesM&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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Five benefits of implementing TariffTel, according to our customers https://www.tarifftel.com/blog/five-benefits-of-implementing-tarifftel-according-to-our-customers/ Tue, 10 Sep 2024 15:09:47 +0000 https://www.tarifftel.com/?p=7593 Customs compliance is a complex arena with a multitude of regulations, tariffs, and duties that businesses must navigate when importing or exporting goods. One of the most important aspects of this process is ensuring the correct classification of goods. Misclassification can lead to costly errors, shipment delays, fines, and can even cause damage to your […]

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Customs compliance is a complex arena with a multitude of regulations, tariffs, and duties that businesses must navigate when importing or exporting goods. One of the most important aspects of this process is ensuring the correct classification of goods. Misclassification can lead to costly errors, shipment delays, fines, and can even cause damage to your business’ reputation.

At TariffTel, we specialise in helping businesses navigate these complexities by providing comprehensive, accurate customs classification solutions. Alongside expert advice from classification specialists, our robust TariffTel system means you take the guess work out of classification and your business can save time, money and hassle when it comes to shipping products internationally.

The high price of assumption in customs classification

What makes up a tariff code?

Goods classification is more than just ticking a box. Every product shipped across borders needs to be assigned a specific tariff code. These codes dictate the customs duties payable, any restrictions, and the documentation required. Read more about codes and their importance here.

The main problem we see many businesses face is assuming they can simply assign codes based on a quick assumption of what their product is. That approach is rife with risk. A slight misinterpretation or a rushed classification could have significant consequences, ranging from overpaying on duties to facing penalties for non-compliance.

We recently spent time looking at some common misclassification mistakes where assumptions are easily made about seemingly simple products. Take camping products for instance, or school equipment.

Here’s where having a solid customs classification solution, like the one we offer at TariffTel, comes into play. Nothing is taken for granted and classifications are made based on accurate product data that takes every detail of a product’s composition into account.

The benefits of implementing a robust, trusted classification solution far outweigh any initial minor upheaval in introducing a new approach within an organisation.

As David James, Group Supply Chain Director at boohoo Group PLC, can testify, “This solution was transformative for boohoo group, we capture all the data required from suppliers for classification that produces the full 10 digit US HTS code. This innovation has ensured the smooth flow of goods through US Customs and since the distribution centre opened we have had zero shipment delays on products entering the US.”

Read more directly about boohoo’s use of TariffTel.

Here are the five key benefits our customers tell us they experienced when they introduced TariffTel

 

1. Preventing costly mistakes

One of the biggest challenges in customs compliance is ensuring that products are correctly classified from the outset. Making assumptions about product classification can lead to costly mistakes. For example, an incorrect HS code can result in paying too much or too little in duties, which may trigger audits, penalties, or shipping delays.

A reliable customs classification solution takes the guesswork out of the process. At TariffTel, our system is designed to meticulously analyse product details, ensuring the right HS code is applied. This level of accuracy helps you avoid costly errors and ensures compliance with international trade regulations.

2. Staying on top of changing regulations

Global trade regulations are constantly evolving. Customs classifications and duty rates can change frequently based on international agreements, national policies, or economic shifts. Relying on outdated assumptions or manual methods to classify products could leave you non-compliant and lead to penalties and fines.

Our experts monitor these changes so you don’t have to. Our solution is continuously updated with the latest regulations, and updates to tariff codes keeping your business in line with the most current requirements. That means you can rest assured that your classifications will always be accurate and up to date.

3. Saving time and streamlining operations

Manual customs classification can be a time-consuming process, especially for businesses dealing with a large number of products or frequent shipments. Often, we see businesses using spreadsheets to record tariff codes and master product data which means manual errors are common and teams often mistrust the data they rely on to classify, not having the assurance it is kept fully up to date. To be accurate in classification, each product needs to be meticulously analysed and documented to avoid errors.

With TariffTel’s automated customs classification system, you can streamline this entire process. We have delved into the intricate terms associated with products, and designed our Item Types to be user-friendly. We eliminate the need for extensive research when classifying. By reducing research time and the need for manual input, our system not only saves time but also boosts productivity by allowing teams to focus on core business activities rather than getting bogged down in administrative work. This ensures your classification is accurate, done quickly and that you adhere to regulatory standards.

4. Reducing compliance risks and penalties

Customs compliance is a strict field, and non-compliance is often met with hefty fines or penalties. This could range from monetary fines to shipment delays or even confiscation of goods in extreme cases. The consequences of non-compliance can damage a company’s reputation and relationships with partners and customers.Features 2

Using an expert customs classification solution minimises these risks. A proactive approach helps prevent unwanted surprises during customs checks, giving you peace of mind that your classifications are accurate. A big part of this is maintaining a comprehensive audit trail. With TariffTel, every classification decision, consultation, and document generation is logged and tracked, providing transparency and accountability for compliance purposes.

5. Building a competitive advantage

Accurate customs classification doesn’t just help with compliance—it can also offer a competitive edge. With the correct codes and knowledge of applicable trade agreements, your business may be able to reduce duties, take advantage of preferential tariffs, or streamline your shipping processes. This can improve your pricing and margins, making your products more competitive in global markets.

TariffTel’s system is designed to identify these opportunities, ensuring that your business isn’t just compliant but also optimally positioned to benefit from international trade regulations.

 

Customs compliance can feel overwhelming, but it doesn’t have to be. By leveraging the right expertise and a trusted solution like TariffTel, you can simplify the process, avoid costly errors, and ensure your business is fully compliant with the ever-changing landscape of international trade. Don’t make the mistake of assuming anything about your products again to determine tariff codes, speak to our team to find out more about how TariffTel takes the guesswork out of the process.

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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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Team spotlight – Jed Jones, Head of Operations https://www.tarifftel.com/blog/team-spotlight-jed-jones-head-of-operations/ Sun, 11 Aug 2024 18:27:52 +0000 https://www.tarifftel.com/?p=7576 Next up in our team spotlight series is Jed Jones, our Head of Operations. Jed talks about how he started out and the different paths that can lead to the role of operations. You can find last month’s team spotlight with Harrison Bay, one of our customs classification specialists, here. Can you tell us more […]

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Next up in our team spotlight series is Jed Jones, our Head of Operations. Jed talks about how he started out and the different paths that can lead to the role of operations.

You can find last month’s team spotlight with Harrison Bay, one of our customs classification specialists, here.

Can you tell us more about your journey to becoming Head of Operations?

My path to becoming a Head of Operations has not been the traditional path taken by most. I originally started out as a car dealer (would you believe!). This taught me a lot about all aspects of running a business, albeit on a micro scale. I then transitioned into Mechanical Engineer progressing up to a Contracts Manager, this role taught me a huge amount about how to manage people, suppliers and clients along with contracts and budgets, all very valuable skills I rely on frequently in my role today.

I joined TariffTel as a Project and Account Manager back in 2019, working closely with several of our clients in implementing various projects. In 2023 I was promoted to Head of Operations, working closely with the directors and senior management team to implement the company strategy and lead the day-to-day operational aspects of the company.

What does a typical day at work look like for you?

In my role no two days are the same. My workload is varied across the business and aligned with the company strategy and needs. Daily my tasks can range from critiquing the finances, managing marketing initiatives and reviewing contracts, through to ensuring the office is well stocked, clean and tidy.

The range of work is vast, and to some people this may seem daunting, but I find it exciting to work across all aspects of the business and lots of different people. We have a very experienced and knowledgeable team here at TariffTel and I’m lucky to be part of it.

What have been some of the most memorable moments?

One of the most memorable moments for me is seeing our new version of TariffTel coming to its final stages, aptly named TariffTel 2.0. What we have accomplished with this project across the business is amazing. Based on our initial strategy discussions, our skilled developers, analysts and customs team have taken the brief and gone above and beyond our expectations in developing the features and the added value TariffTel 2.0 will bring to our clients. Alongside this, our sales and marketing team have been working extremely hard in re-branding the business, creating a new website and delivering valuable information to not only our clients but the industry as a whole.

The great news is that we are not stopping there! The future roadmap for all our products is very bright indeed and I look forward to contributing to this.

For anyone looking to get into operations, what skills do people value and how can people find out more about the industry?

Operations is a broad and vast area that means many different things to many different businesses. As such I personally feel it’s a process of learning, being inquisitive and not being afraid to put your hand up and make a suggestion if you feel there is a better way of doing something. The skills needed for the role would be a keen eye for detail, looking at all aspects of a business and how they work together or compliment each other, removing ambiguity and ensuring the strategy of the business is well communicated to all along with the company values.

What’s the best advice you’ve ever received with regards to work and what impact did it have?

To not be afraid to raise your hand, it’s really as simple as that. If you feel there is a better way to do something then say it, a refreshing view on a topic will likely be welcomed. Don’t be disheartened if your suggestions are not taken on board either. A good employer will always value the views of its staff.

What advice do you have for people working in the industry?

My advice would be to think outside the box and be inquisitive. In simple terms, it is having a forward-thinking view. Always looking ahead to what’s next? Where is the company going? What do we do well? Along with keeping a close eye on industry trends and gaining valued feedback from customers. This information will contribute to the company strategy and ensure future success.

This mindset allows you to create a companywide continuous improvement process incorporating all aspects of the business, products, processes, staff and brand.

What advice do you have for people looking to get started in the industry?

IT as an industry is vast, at TariffTel we specialise in business solutions and as part of that we have various teams of skilled individuals. From software development through to service delivery. I would firstly ascertain where you want to go in IT and review various job descriptions to see what skills are required. Following this I would conduct a skills audit, where do you match the common skills required and where do you need to fill gaps? This will then give you a clear roadmap of areas you need to focus on.

Never stop learning, things continually change and whilst good employers will invest in their staff, it’s also great to see when individuals invest in themselves to progress and widen their knowledge base. This will make you more competitive when applying to prospective roles or when your company is looking to promote from within.

What do you do for fun outside of work?

Outside of work I renovate cars (old habits die hard!) and enjoy spending time with my fiancée. We are shortly going to become parents for the first time so have been busy with all aspects relating to that!

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How to stay on top of trade compliance https://www.tarifftel.com/blog/how-to-stay-on-top-of-trade-compliance/ Tue, 06 Aug 2024 09:52:50 +0000 https://www.tarifftel.com/?p=7565 When it comes to assigning tariff codes to your goods, there are several good practices to adopt that make all the difference in determining the right code and ensuring trade compliance. Not only that, these practices ensure you form strong relationships with the people and companies in your trade compliance network to enable more efficient […]

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When it comes to assigning tariff codes to your goods, there are several good practices to adopt that make all the difference in determining the right code and ensuring trade compliance. Not only that, these practices ensure you form strong relationships with the people and companies in your trade compliance network to enable more efficient processes and cost savings, as a result. This is especially true for your suppliers.

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. COE supply chain management

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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Picky about your picnic food classifications? https://www.tarifftel.com/blog/picky-about-your-picnic-food-classifications/ Mon, 05 Aug 2024 11:13:47 +0000 https://www.tarifftel.com/?p=7568 Everyone enjoys a picnic, but do you enjoy classifying picnic products as much as eating them? When it comes to classifying picnic goods it pays to be picky with the detail to determine the correct tariff code. With accurate codes comes compliance with trade regulation and you ensure your shipments arrive promptly at their destination […]

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Everyone enjoys a picnic, but do you enjoy classifying picnic products as much as eating them? When it comes to classifying picnic goods it pays to be picky with the detail to determine the correct tariff code. With accurate codes comes compliance with trade regulation and you ensure your shipments arrive promptly at their destination so your picnic foods are as fresh as can be.

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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When is swimwear not swimwear according to the tariff book? https://www.tarifftel.com/blog/when-is-swimwear-not-swimwear-according-to-the-tariff-book/ Thu, 25 Jul 2024 12:30:47 +0000 https://www.tarifftel.com/?p=7551 Are you swimming through a sea of regulation and HS codes when it comes to classifying popular Summer products such as swimwear? 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 […]

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Are you swimming through a sea of regulation and HS codes when it comes to classifying popular Summer products such as swimwear?

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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