In an interconnected global economy, integrated customs tariffs play a vital and pivotal role in regulating international trade and strengthening national economies. They are the vital point of contact between global markets and domestic economic policies, making them an indispensable topic for anyone interested in trade and economic development. So in this article, we will explore what a customs tariff is and its role, in addition to its impact on the global market and national economies, including the challenges and opportunities it faces in the era of modern economic globalization, in addition to how to read the commodity symbol in customs, so follow with us the next lines of this article.
What is meant by an integrated customs tariff?
The Integrated Customs Tariff Schedule is an international system of classification of goods based on a uniform six-digit numerical code that is identical to the Harmonized System developed by the World Customs Organization. It is worth noting that this classification is essential in customs clearance operations and helps determine the customs duties and taxes due on each type of goods.
The system includes 21 main sections and 98 chapters covering all types of goods, from raw products to finished products, which facilitates international trade and provides a unified basis for trade negotiations between countries.
The basic principles of classifying goods in the customs tariff schedule
The integrated customs tariff is a unified classification system for goods and products traded internationally. This system is based on a set of basic principles that ensure the ease and transparency of the customs classification process. The most important of these principles are the following:
Indicative value of titles
The headings of sections, chapters, and parts of chapters in the Customs Tariff Schedule are of indicative value only; therefore, this means that they help guide the user but do not conclusively determine the final classification of goods.
Legal basis for classification
The actual classification of items is legally determined based on several factors, which are as follows:
- Texts of specific items.
- Notes for sections or chapters.
It is important to note that these rules apply only if they do not conflict with the provisions of the terms and notes mentioned.
Comprehensiveness of references in items
Incomplete or unfinished items
When a specific clause refers to an item, this reference also includes incomplete or unfinished items, provided that they possess the basic characteristics of the complete or finished item. It is worth noting that this applies even if the item is disassembled or unassembled.
Pure and mixed materials
When a specific item refers to a material, this reference includes the material whether it is pure, mixed, or combined with other materials, and any reference to a good made from a specific material includes goods made wholly or partially from this material.
Classification of mixed or combined items
Mixed or combined items are classified in accordance with the principles stipulated in Rule (3/A). It is worth noting that this rule in the integrated customs tariff schedule stipulates the following:
Weighting by assignment
The more specific clause prevails over more general clauses, however, if there are multiple clauses, each of which refers only to a portion of the materials composing the mixed or combined items or to only a portion of the goods put up as sets for retail sale. These items are equally specific, even if one provides a more accurate or complete description.
Classification of mixed items and combined products
If rule (3/a) cannot be applied, these items are classified according to the material or variety that gives them the main characteristic, if this characteristic can be determined.
Classification in cases of impossibility
If the previous two rules cannot be applied, the item will be classified as the item that appears late in the numerical order among the items that can be taken into consideration.
Classification of items that cannot be classified according to the previous rules
In the event that there are items that cannot be classified according to the above-mentioned rules, they shall be classified under the items that are most similar to them.
Note
Through these principles and rules, accurate and uniform classification of goods in the Integrated Customs Tariff Schedule is ensured, facilitating the international trade process and ensuring fair and consistent application of customs duties.
Additional principles of commodity classification
When dealing with goods included in the categories mentioned below, a set of rules are applied in addition to the applicable general provisions. It is worth noting that these goods are classified according to a set of standards that ensure the effective organization of trade and classification operations. Below, we will explain the details of these rules and how to apply them:
Classification of special cans and packaging
This category includes:
- Photographic equipment boxes and covers.
- Musical instruments.
- Drawing tools.
- Similar containers are specially designed to contain a specific item or group of items (sets).
It is worth noting that these boxes and wrappers can be used for long periods and are presented with the items for which they were designed.
Classification rules
These boxes and wrappers are to be grouped with the articles for which they are intended if they are of a kind, usually sold with these articles, but this rule does not apply to containers that give the whole lot the main character. That is, the container that gives the group its basic identity is considered a major part of it and is classified accordingly.
Packaging containers
In addition to the previous provisions, packaging containers provided containing goods are classified with such goods themselves if they are of a type commonly used in packaging such goods, but this rule is not binding if the packaging containers are clearly capable of repeated use.
Rules for classifying goods
Goods are legally classified in sub-headings of the same main heading based on the texts and notes of these sub-headings. It is worth noting that it must be taken into account that the sub-headings can only be compared if they are of the same level.
In order to apply these rules correctly, section and chapter notes must also be taken into account, unless otherwise stated.
How can you use the customs tariff website to access the commodity code?
The Integrated Customs Tariff is an important tool for importers and exporters to ensure compliance with customs regulations and estimate costs. So here’s an example of this tariff:
Suppose you want to buy a shipment of oranges, for example, and you would like to know the customs tariff for this shipment. All you have to do is:
- Access the Zakat, Tax, and Customs Authority website from here.
- Enter the word “orange” in the search box.
- You will find this list:
- Determine whether you would like to know the customs tariff for oranges, fresh oranges, dried oranges, and so on.
- In front of each selection, you will find the item and the HS code, so remember them well, and you will also find the fee category.
- For example, orange juice has a 5% fee, while fresh and dried oranges do not have any fees.
- Don’t forget to carefully read the required procedures that you will find on the far left of the image.
How do I read the commodity code at customs?
Understanding the commodity code at customs is crucial to facilitating import and export operations. It is worth noting that the Integrated Customs Tariff Table, according to the Harmonized System for Classification and Classification of Goods (2007 Edition), includes codes that follow a specific pattern that facilitates identifying the details of the covered goods. So here is how to read and understand these codes. :
Structure of the customs commodity code
Arabic numbers (0 1 2 3 4 5 6 7 8 9) were used in this table, with important notes provided to its users to facilitate understanding of the numbers and symbols. The table includes multiple fields that include specific information about the commodity.
First field: item number
The first field of the customs tariff table, referred to as the item number, contains four numbers that can be divided as follows:
- The first two numbers represent the fixed chapter number (for example, 01).
- The following two represent the item number (for example, 02).
It is worth noting that the four numbers (for example, 01.02) are read by separating each two numbers separately from left to right, and the old separator (/) between the chapter number and the clause is replaced with a period (.) to simplify reading.
Second field: HS code
The second field includes the HS code, consisting of eight numbers, separated by spaces after every two numbers to facilitate reading. The details of these numbers are as follows:
- The first two numbers represent the class code.
- The third and fourth represent the main item numbers.
- The fifth and sixth represent the sub-items.
Details of sub-items
- If the sixth digit is (0), the subclause begins with a single dash (-).
- The sixth number is another number, so the subclause begins with two dashes (-).
Local subparagraphs
The seventh and eighth numbers of the code represent the local subparagraphs:
If the eighth digit is (0), the subparagraph begins with three dashes (-).
The eighth number is another number, so the local subparagraph begins with four dashes (—).
Note
This version of the Integrated Customs Tariff Table is the latest version in accordance with the Harmonized System for Classification of Goods, version 2007, and Arabic numbers are used to facilitate reading and understanding.
Why do companies choose Qoyod as the best integrated tariff accounting software?
There are dozens of people who choose Qoyod over any other accounting program for the following reasons:
Ease of use
Qoyod is ideal for businesses looking for an easy-to-use accounting solution, and thanks to its simple user interface, users of all levels, even those without a strong accounting background, can navigate and use the software efficiently. This reduces the need for extensive training and helps accelerate the adoption process within companies.
Integration with customs tariff operations
Qoyod provides seamless integration with end-to-end customs tariff processes, making it easier to manage customs documents and track shipments. Users can upload documents and track the status of shipments in real time, reducing errors and ensuring compliance with customs laws.
Supplier management and purchasing
Qoyod software enables companies to improve purchasing processes and manage suppliers effectively, as users can easily create and send purchase orders to suppliers, which enhances efficiency and strengthens business relationships. This integration also contributes to reducing the time spent in the purchasing process and improving the accuracy of transactions.
Track costs
Qoyod helps companies accurately track all costs related to customs tariff operations, including customs fees and taxes, in addition to other logistical costs. It is worth noting that this ability to accurately track costs enables companies to maintain their budget and reduce financial waste.
Data analysis
Qoyod provides detailed reports and advanced financial analyses, which help companies understand the performance of customs tariff operations in a deeper way. It is worth noting that these analyses enable managers to make strategic decisions based on accurate data, which contributes to improving the overall efficiency of the company.
Integration with other systems
Qoyod can integrate with a range of other systems within the company, such as the inventory management system and the customer management system. This comprehensive integration increases the efficiency of operations and helps improve coordination between various departments, leading to increased productivity and reduced operational costs.
Improve efficiency and effectiveness.
Thanks to these integrated features, the Qoyod program helps companies improve the efficiency and effectiveness of integrated customs tariff operations, while managing financial affairs becomes easier and clearer, which contributes to enhancing growth and achieving the companies’ strategic goals.
Conclusion
It can be said that the integrated customs tariff is not just a tool for regulating trade and generating revenues but rather a fundamental pillar for promoting economic development and sustainability, and that understanding its multiple effects and adapting to its variables reflects the ability of countries to compete in global markets and achieve well-being for their people. It is worth noting that, thanks to its role in protecting national industries, facilitating fair trade, and stimulating innovation, it remains a vital element in building a resilient and balanced economy. As global economic challenges evolve, it becomes necessary to review and update these definitions regularly. To ensure that they keep pace with changes and maintain the competitiveness of the national economy in the international market, governments and companies should strive to make the most of this tool by adopting flexible and sustainable strategies that are in line with the accelerating global economic changes.
It is worth noting that the Qoyod program will make things much easier for you, as it provides you with many things, such as a point-of-sale system, electronic invoice systems, sales and warehouse management, and so on.
After learning what the Integrated Customs Tariff is, try Qoyod now for free for 14 days and enjoy its business growth and prosperity day after day.
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