{"id":11980,"date":"2023-09-04T16:00:00","date_gmt":"2023-09-04T16:00:00","guid":{"rendered":"https:\/\/olicargo.com\/?p=11980"},"modified":"2023-08-22T14:01:11","modified_gmt":"2023-08-22T14:01:11","slug":"tariff-classification-what-is-it-used-for","status":"publish","type":"post","link":"https:\/\/olicargo.com\/en\/blog\/2023\/09\/tariff-classification-what-is-it-used-for\/","title":{"rendered":"Tariff Classification: What is it used for?"},"content":{"rendered":"\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"252\" data-id=\"11970\" src=\"https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/C_Pautal_B02-1024x252.webp\" alt=\"\" class=\"wp-image-11970\" srcset=\"https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/C_Pautal_B02-1024x252.webp 1024w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/C_Pautal_B02-300x74.webp 300w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/C_Pautal_B02-768x189.webp 768w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/C_Pautal_B02-jpg.webp 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/figure>\n\n<p>In addition to Incoterms, Combined Nomenclature (CN) codes are also used in international trade.<\/p>\n\n<p>In practice, these codes, which are based on the Harmonised Commodity Description and Coding System (HS), allow goods to be classified under a particular code number and the application of restrictions, exemptions, rights and other impositions through their tariff measures.<\/p>\n\n<p>For those who deal with the flow of goods in the international space on a daily basis &#8211; both in terms of imports and exports &#8211; it is one of the pillars of customs that must be taken into account.<\/p>\n\n<p>How does the tariff classification of goods work? Read this publication to find out.<\/p>\n\n<p>&#8220;Tell me your code and I\u2019ll tell you how you\u2019ll be taxed!&#8221;<\/p>\n\n<p>All products exported from or imported into the EU are classified under a tariff code. This classification helps to understand what conditions and tariffs should be applied to a particular product.<\/p>\n\n<p>In this case, the tariff code provides the following information:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Duty fees and other fees applicable to the product.<\/li>\n\n\n\n<li>Applicable protective measures (e.g., anti-dumping).<\/li>\n\n\n\n<li>Import and export formalities and other non-tariff requirements (health certificates, quality controls, CE marking, etc.)<\/li>\n<\/ul>\n\n<p>The absence or misuse of commodity codes presents a risk of:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Violation of standards and safety.<\/li>\n\n\n\n<li>Sanctions Risk.<\/li>\n\n\n\n<li>Financial and criminal liability.<\/li>\n\n\n\n<li>Tax revenue lost.<\/li>\n<\/ul>\n\n<p>How can these risks be avoided in the relationship between taxpayers and tax and customs authorities?<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Implement internal verification systems for NC codes.<\/li>\n\n\n\n<li>Introduction of pre-import and post-export control mechanisms.<\/li>\n\n\n\n<li>Introducing contractual and penal clauses<\/li>\n<\/ul>\n\n<p><strong>What about the Global Classification System? What is it used for?<\/strong><\/p>\n\n<p>It contributes to the harmonisation of customs and trade procedures and the exchange of trade data, thereby reducing the costs associated with international trade.<\/p>\n\n<ul class=\"wp-block-list\">\n<li>It consists of around 5,000 categories of goods.<\/li>\n\n\n\n<li>Each group is identified by a six-digit code. It is organised in a legal and logical structure.<\/li>\n\n\n\n<li>A system used by more than 200 countries and economies. It is the basis for customs duties and the collection of international trade statistics.<\/li>\n\n\n\n<li>More than 98 per cent of goods in international trade are classified in terms of the HS.<\/li>\n<\/ul>\n\n<p><strong>But after all&#8230; how do you classify goods?<\/strong><\/p>\n\n<p>To find the appropriate tariff code, it is necessary to classify them in the nomenclature.<\/p>\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-2 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"508\" data-id=\"11974\" src=\"https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex01-1024x508.png\" alt=\"\" class=\"wp-image-11974\" srcset=\"https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex01-1024x508.png 1024w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex01-300x149.png 300w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex01-768x381.png 768w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex01.png 1195w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/figure>\n\n<p>Sometimes it gets complicated when the classification is not explicitly stated in the nomenclature. In this case you need to have a detailed knowledge of the goods (including their composition).<\/p>\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-3 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"270\" data-id=\"11976\" src=\"https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex02-1024x270.png\" alt=\"\" class=\"wp-image-11976\" srcset=\"https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex02-1024x270.png 1024w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex02-300x79.png 300w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex02-768x202.png 768w, https:\/\/olicargo.com\/wp-content\/uploads\/2023\/08\/CPautal_Ex02.png 1401w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/figure>\n\n<p><strong>Sources:<\/strong><\/p>\n\n<p>Access2Markets. (s.d). Classifica\u00e7\u00e3o dos produtos. Consultado a 08 de agosto de 2023, em: <a href=\"https:\/\/trade.ec.europa.eu\/access-to-markets\/pt\/content\/classificacao-dos-produtos\">https:\/\/trade.ec.europa.eu\/access-to-markets\/pt\/content\/classificacao-dos-produtos<\/a><\/p>\n\n<p>APOTEC. (2020). IEC e Direito Aduaneiro. A import\u00e2ncia da classifica\u00e7\u00e3o pautal. Consultado a 08 de agosto de 2023, em: <a href=\"https:\/\/www.apotec.pt\/fotos\/editor2\/IEC%20e%20Direito%20Aduaneiro%20vrs2.pdf\">https:\/\/www.apotec.pt\/fotos\/editor2\/IEC%20e%20Direito%20Aduaneiro%20vrs2.pdf<\/a><\/p>\n\n<p>Balona, C. (2022). Diz-me o teu c\u00f3digo e dir-te-ei como ser\u00e1s tributado. Consultado a 08 de agosto de 2023, em: <a href=\"https:\/\/www.ey.com\/pt_pt\/tax\/diz-me-o-teu-codigo-e-dir-te-ei-como-seras-tributado\">https:\/\/www.ey.com\/pt_pt\/tax\/diz-me-o-teu-codigo-e-dir-te-ei-como-seras-tributado<\/a><\/p>\n\n<p>Martins, H. (2018). A Classifica\u00e7\u00e3o Pautal de Mercadorias \u2013 Enquadramento. Consultado a 08 de agosto de 2023, em: <a href=\"https:\/\/www.linkedin.com\/pulse\/classifica%C3%A7%C3%A3o-pautal-de-mercadorias-enquadramento-heitor-martins\/?originalSubdomain=pt\">https:\/\/www.linkedin.com\/pulse\/classifica%C3%A7%C3%A3o-pautal-de-mercadorias-enquadramento-heitor-martins\/?originalSubdomain=pt<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In addition to Incoterms, Combined Nomenclature (CN) codes are also used in international trade. In practice, these codes, which are based on the Harmonised Commodity Description and Coding System (HS),&#8230;<\/p>\n","protected":false},"author":6,"featured_media":11973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":{"0":"post-11980","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"_links":{"self":[{"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/posts\/11980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/comments?post=11980"}],"version-history":[{"count":1,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/posts\/11980\/revisions"}],"predecessor-version":[{"id":11981,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/posts\/11980\/revisions\/11981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/media\/11973"}],"wp:attachment":[{"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/media?parent=11980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/categories?post=11980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olicargo.com\/en\/wp-json\/wp\/v2\/tags?post=11980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}