1. Important details for recognizing product codes
You require a product code called a Harmonised System Code to figure out relevant tariff rates for items exported or imported into the UK. Commodity codes are globally acknowledged referral numbers that explain a particular item when importing or exporting products. These codes are likewise essential when submitting custom-mades statement types.
To discover a product code, you will require particular information about the products you are importing or exporting, consisting of:
-
the kind of item
-
what the item is utilized for
-
the products utilized to make the item
-
how the item is produced
-
the method the item is packaged
These information will enable you to determine the particular product code that uses to your item. Use the Trade Tariff Look Up Tool or the DCTS Visualisation Tool to discover your product code.
You ought to likewise check out the assistance on guidelines of origin on the trading with establishing countries page, particularly the relevant cumulation guidelines and item particular guidelines (PSRs) under the appropriate Harmonised System (HS) chapters.
2. Identify tariffs based upon product codes
Once you have actually determined your product code, you can discover the particular tariff rate relevant to your item. Tariff rates are based upon the choice tier of the native land and the product code. You ought to see the choice tiers under the DCTS assistance on the trading with establishing countries page to learn more about your nation tier.
Tariffs under Comprehensive Preferences
For exporters in nations entitled to Comprehensive Preferences, a 0% import tariff uses on 99.8% of items – all items other than arms and ammo. Products categorised as arms and ammo will go through tariff rates, as defined in the UK Global Tariff (GT).
Tariffs under Enhanced Preferences
Exporters in Enhanced Preference nations are entitled to 0% import tariffs on 92% of their line of product. 160 (1.6%) receive preferential however non-zero tariff rates. The staying items which are not covered under Enhanced Preferences undergo tariff rates under the UK GT.
Examples of items which undergo tariffs under the UK GT:
| Commodity code | Indicative description | Applicable Tariff | Tariff rate |
|---|---|---|---|
| 10049000 | Oats (leaving out seeds for sowing) | UK Global Tariff | £74 per tonne |
| 02074491 | Fresh or cooled livers of domestic ducks (leaving out fatty) | UK Global Tariff | 6% |
Under the DCTS, tariffs have actually been decreased or minimized on 156 extra items compared to the UK Generalised Scheme of Preferences (GSP). Examples of such items consist of tomatoes, olive oil and animal foods.
Tariffs under Standard Preferences
Standard Preferences under the DCTS do not cover all line of product. Exporters in Standard Preference nations are entitled to 0% tariffs on 65% of line of product, while 26% of line of product have actually minimized however have non-zero tariffs. 9% of line of product that are not covered by the DCTS undergo tariff rates under the UK GT.
Exporters in Standard Preference nations need to likewise abide by products graduation. Goods graduation is when preferential rates of custom-mades responsibility are suspended on extremely competitive items. Goods that finish will go through tariff rates under the UK GT. You ought to examine the notification on products graduation on the trading with establishing countries page for additional information on these items.
The requirements for finishing products is based upon HS chapters instead of the GSP areas. The modification in graduation requirements makes sure more neutrality due to the fact that the HS Chapters are more particular than the GSP areas.
The evaluation duration for products graduation is 3 years. This implies the federal government will just perform an evaluation about which products ought to finish after every 3 years. The shift duration enables diverging market patterns while offering some certainty to businesses.
3. Understand various tariff rates under the DCTS
Ad-valorem tariffs
Most tariffs under the DCTS are ad-valorem tariffs. An ad-valorem tariff is a portion of the worth of the item. The worth describes the overall custom-mades worth of the item.
For example, the tariff for white chocolate for Comprehensive and Enhanced Preference nations is 0%, while Standard Preference is 4.5% of the worth of the item.
Specific tariffs
Specific tariffs are tariffs computed as a repaired charge on a unit of the item. The item system might be weight, volume, variety of products or other requirements.
For example, the tariff for carcasses and half carcases of domestic swine is £44 per 100kg.
Compound tariffs
Compound tariffs are a mix of ad-valorem tariffs and particular tariffs.
Example of substance tariffs:
| HS Code | Product description | Tariff |
|---|---|---|
| 04032051 | Yoghurt, whether focused, flavoured or with included fruit, nuts or cocoa, sweetened, in strong types, of a milkfat material by weight of less than or equivalent to 1.5% | 4.5% plus £79 per 100kg |
In this example, the ad-valorem tariff is the 4.5% charged on the worth of the item while the particular tariff is £79 per 100kg.
Seasonal tariffs
Seasonal tariffs are tariffs that alter depending upon the time of the year.
For example, fresh plums undergo seasonal tariffs under the DCTS as follows:
| Commodity code | Timeline | Standard Preference Tariff | Enhanced Preference Tariff |
|---|---|---|---|
| 08094005 | 1 October to 10 June | 2.5% | 0% |
| 08094005 | 11 June to 30 June | 6% | 6% |
| 08094005 | 1 July to 30 September | 12% | 12% |
Elimination of seasonal tariffs for choose items under the DCTS
The DCTS gets rid of seasonal tariffs for 4 line of product. The very same tariff will use throughout the year for these items.
The 4 line of product are:
| Commodity code | Indicative description | Standard Preference Tariff | Enhanced Preference Tariff |
|---|---|---|---|
| 0707005 | Cucumbers | 8.5% | 0% |
| 07099100 | Globe Artichokes | 6.5 | 0% |
| 08052900 | Wilkings | 12.5% | 0% |
| 08101000 | Strawberries | 6.5% | 0% |
Nuisance tariffs
Low tariffs, generally in between 0% and 2%, are typically called ‘nuisance tariffs’. The DCTS gets rid of all 2% or listed below tariffs throughout all choice tiers.
This assistance is likewise available as a PDF:
