Customs Classification: Explained
Professional advice for determining the correct customs classification for imported goods
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EXPLAINED
What is a
Customs Classification?
Customs classification is the process of assigning a numerical identification number to a product from the relevant country's customs tariff. In the UK, this is known as the commodity code. Every imported or exported product must be assigned a commodity code.
The commodity code is used for product identification, as well as determination of the applicable import duty rate and several non-tariff measures, such as documentary requirements, licenses, quotas, restrictions and import controls.
Correctly classifying goods for import or export is a legal obligation of every business and individual who imports and exports.
In instances where more than one code may apply, the correct classification can have a significant monetary impact.
Leaning towards caution may be an appropriate decision on low value imports, but when small percentages matter, a professional review could save your business thousands in unnecessary import duties.
Customs classification is an essential part of importing and exporting, but is inherent with financial, reputational and legal risk.
Ensuring the business has appropriate processes and controls to mitigate classification risk is crucial to remaining both compliant and commercially competitive.
Correctly classifying goods is ultimately the legal responsibility of anyone who imports and exports goods.
As such, customs classification should viewed in the same regard as finance, where careful consideration is given to staff knowledge, skills and legal decision making.
In some cases, customs classification can be deceptively difficult.
With variances in duty rates, licensing and controls all underpinned by the commodity code, businesses face a monetary, reputational and legal risk when undertaking customs classification.
Businesses who have implemented optimal classification processes have several common traits:
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"We truly appreciate the support BKR provided us on a preferential origin project. Their support allowed for a significant step forward in unlocking further duty savings for Brooks Sports."
Tineke Guerrero Meeuws
Director of Trade Compliance
Some of the best practises all businesses should adopt within the customs classification strategy:
Three of our most prolific classification services. From professional reviews of an individual product, to large scale data base cleanses, or staff training and process design.
Complex product classifications where an expert opinion is crucial
In instances where multiple classifications may apply or significant importance is placed on a single product classification, an expert opinion can be crucial. Our team of classification experts are equipped to undertake the necessary research and decision making to provide the assurance your business requires.
What this includes:
Mass product classification for businesses with large and diverse active SKU counts
By outsourcing your customs classification as part of a regular or one-off exercise, you can rebuild confidence in your classification data. Our team of classification experts will classify each product and provide an audit log to ensure decisions can be reviewed and justified if challenged by customs officials.
What this includes:
High quality classification processes are essential for the preservation of high quality classification data
Without high quality classification processes, classification data will gradually become corrupted. By working with an advisor, responsible members of staff receive the appropriate training and play an essential part in co-creating processes which ensure the correct commodity codes are assigned, declared and validated.
What this includes:
All our projects are bespoke and consist of a tailormade scope based on a client's specific requirements. As such, the blueprints below are indicative and have been provided for comparison only.
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Still not sure or looking for support with something not listed? Schedule a FREE consultation with one of our advisors to discuss your business's specific requirements.
"With BKR’s support, we are able to utilise customs special procedures within our UK manufacturing projects. Their input has allowed us to grow our UK production and maximise profitability whilst doing so."
Sarathe Natarajan
Import Manager
Empowering our clients to focus on what makes them succesful.
BKR Consultants Ltd provides professional and practical guidance on all matters associated with customs clearance, customs compliance and supply chain efficiency.
Our primary goal is to work with our clients to achieve an optimal budget for import duty, all the while mitigating compliance risks for the business.
We achieve this by delivering strategic customs guidance and leveraging expert customs resources, to fulfil a capability many businesses find challenging to develop internally.
Our team possesses expertise across diverse areas, including health and regulatory affairs from APHA, extensive experience in large business unit management within HMRC, customs brokerage, and leadership roles within large multinational businesses and member associations.
Let us know a little bit about how we can help and one of our customs experts will be in touch to arrange a consultation at the next mutually convenient date.
Contact us using the details below, or simply fill out the contact form:
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