The issue

The correct tariff classification of imported goods is critical in determining the extent of bottom line costs to the business which cannot otherwise be recovered. However, with proper advice, such duties may be minimized where, for example, a more favourable classification can be identified. This can also lead to duty reliefs being identified and applied.

For manufacturers, certain duty reliefs may apply when, for example, goods are imported and then are subsequently re-exported in other products.

For other importers, obtaining the certainty of a Binding Tariff ruling from HMRC may provide comfort in respect of classification of goods.

Action required

A careful examination of current or potential tariff classifications should be undertaken. Often, agents will enter goods into “safe” classifications, when greater in-depth analysis of the nature of the goods will suggest more appropriate descriptions.

Example

A client had imported food additives under a classification disputed by HMRC. Obtaining scientific and trade evidence that their contentions were incorrect, we were able to convince HMRC to accept the validity of the original classification.