Ankara, Turkey 23 February 2005

1. Ankara, Turkey23 February 2005 Tariff Classification

2. Greetings from UK Customs!

3. The three liability elements Tariff Classification Origin Valuation

4. Aspects • Importance of Tariff Classification • Background to tariff structure • World Customs Organisation Harmonised System Nomenclature General Rules of Interpretation Nomenclature Committee Opinions Explanatory Notes • European Community Combined Nomenclature Nomenclature Committees Explanatory Notes EC Regulations Statements in Committee minutes Binding Tariff Information • Dealing with classification disputes and issues

5. The importance of Tariff Classification • Nearly all Trade policy measures are attached to the tariff classification • These include import duties, preferences, anti-dumping, licences,suspensions,quotas. • The Tariff is used as a basis for Trade Agreements- WTO- HS6 • Trade statistics depend on accurate classification – Balance of payments

6. The importance of getting it right • In the EU we can call for arrears of duty for up to 3 years after the date of importation • Too late to recover from consumer • Pay out of own pocket!!! • Other attached measures might be wrong

7. World Customs Organisation

8. World Customs Organisation • Harmonised System Nomenclature forms the core structure of over 200 countries customs tariffs world-wide • HS comprises the 4-digit Headings and 6-digit Sub-Headings • Alphabetical Index • 6 General Rules of Interpretation • WCO Opinions • HS Explanatory Notes

9. General Rules of Interpretation • 1 Text of Headings and Sub-Headings, and Section and Chapter Notes • 2a Unassembled or unfinished goods • 2b Mixtures – use Rule 3 • 3a Most specific description • 3b Essential character, Sets • 3c Equal merit – last heading in numerical order • 4 Most akin • 5a Packing specifically for the product • 5b Normal packaging for transport • 6 Rules also apply to sub-headings

10. Sets • Must be put up in sets for retail sale • Consist of at least two different articles that are classifiable in different headings • Consist of articles put up together to meet a particular need or function

11. Parts • Articles are only classified as parts of the article for which they are intended if there is no more specific heading for example car tyres are classified as such in articles of rubber (Chapter 40) and not as parts of cars.

12. EC Combined Nomenclature • EC further sub-division of HS to 8 and 10 digits and beyond • Also used by many non-EU countries, especially CIS, Turkey, EFTA, CARDS, MAGREB etc • Four Customs Code Nomenclature Committees – Agriculture/Chemicals Textiles Mechanical/Electrical Miscellaneous

13. EC decisions • Entry in the Committee minutes • CN Explanatory Notes • EC Regulations • Change to the CN • Binding Tariff Information • European Court of Justice rulings

14. Binding Tariff Information • A trade facilitation measure to provide legal certainty • Binding on customs administrations • 6 year validity (but will become 3) • Customs can revoke, but allow period of grace • Accessible on Internet (Europa) • Review and Appeals procedures

15. Getting your voice heard • Raise issues with your customs administration – including review and appeals, courts • Customs administrations are more likely to listen to Trade Federations/Associations • Possible trade representation at both EC and WCO classification committees