Teatime

I’m running a public tariff classification training course in a couple of weeks’ time (see website) and whilst adding the finishing touches to the examples (I like to keep things topical) my sister presented me with a home-made chocolate cornflake cake.    My mind immediately turned to how to classify such an item.   What were the ingredients and in what proportion?  Although called a ‘cake’ it isn’t really a cake.  Chapter 19 prepared foodstuffs is the logical choice but should it be 1904 cornflakes or 1905 bread, pastry, cakes and biscuits whether or not containing chocolate?     A quick review of the GIRs would lead me to suggest 1905 as the highest tariff code should be chosen. 

 Too late ! – It is not going anywhere it was delicious….

 

 

 

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Life’s a bowl of cherries

Baking cakes for the local Harvest Festival Fayre today I wondered about the import of glace cherries.  A quick look in the tariff revealed that Chapter 200860 was the right place to go but there were 14 tariff codes!   Information was needed on sugar content, spirit content, quantity, diameter and whether or not they were to be used in chocolate!

 

Mine just topped iced cupcakes.

 

 

 

 

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Lateral thinking

Many Countries' tariff listings are now on-line which is very helpful.  Even better many of them have search fields so that you can simply put in the name of a product.  What could be more straightforward?   All is not as simple as it seems. 

Just try putting ‘teddy bear’ into the search field.   Do you get a code for that loveable furry friendly soft toy?  No! You get all sorts of headings for ball bearings.  

This illustrates the difficulty in using product descriptions in such search engines.

What do you need to type in if you want the code for that loveable teddy bear?

Toys representing animals or non-human creatures – stuffed!

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Upgrade anyone?

Electronics are often the source of difficulty in international trade but aside from the obvious issues one that is often ‘forgotten’ is the problem that upgrades can bring.   

Having gone to enormous trouble to obtain a tariff classification and export licence for the original item, product development and customer feedback will often lead to the development of a new, improved version.

 

However, what appear to be improvements or extensions to existing functionality can in Customs terms change the classification and the export licence class of the product.  This can mean a change to the tariff code and an invalidation of the export licence.

The result?

An inability to export any of the product until a new export licence is obtained 
An increase in import duty and VAT
Delayed product launches
Unhappy customers

The solution?  Teamwork!


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Bejewelled

During my piano lessons this morning (yes I teach piano as well as import / export) it occurred to me to wonder how many of my shipping friends would appreciate the challenge of providing a tariff classification for a functional grand piano that is also a million dollar work of art and contains a player system and electronics.

Take a look at this link to see what I mean ..New York Serenade piano

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