[Customs clearance] The routine of customs code classification

The two most difficult issues in the customs clearance process of the destination country of cross-border logistics are the definition of declared value and the classification of customs codes. The differences between sellers and logistics companies are often on these two issues . Different sellers, different logistics companies, different customs brokers, and different customs brokers may have different customs codes for the same product. So is there a more reasonable reference standard for the upstream and downstream of the industry to try to reach a consensus when encountering differences? Here we try to list the common methods of customs code classification, hoping to extract some consensus!

Note: The complete Chinese customs code of the product is different from the complete foreign customs code. Therefore, the code of China's export declaration cannot be directly used for foreign import declaration!

First, check the Chinese customs code (HS Code) of the product

https://www.hsbianma.com/, enter the product name or product code to find relevant detailed information, take the water purifier as an example:

       There are many customs codes found in the search, which look alike but not exactly alike, can you choose one at random? Of course not. Although these codes are only one or two digits apart, it can be seen from the list that the export tax rebate rate, regulatory conditions, and inspection and quarantine requirements are all different. If you want to find the exact customs code, you have to click to view the details. For detailed commodity names, you can also find the corresponding regulatory conditions and declaration elements.

Then, check the customs code of foreign countries

The first six digits of the code are commonly used internationally, and the subsequent six digits are compiled by each country.

1: US customs code (HTS Code): https://hts.usitc.gov/

    Taking the water purifier (842121) just now as an example, we enter the first 6 digits to search, and then find the description that best matches the product under the category, that is, find the corresponding US customs code and import tariff rate.

"General" in "1" refers to tariffs on products imported from most of the world (including China), and "special" refers to import tariffs from countries that have relevant free trade agreements with the United States (often free, but that does not include China) .

"2" refers to the import tariffs of special countries with restricted trade (such as North Korea) that have no trade relationship with the United States.

So, we are looking at the "General" tax rate.

At this time, someone will ask, the "General" tax rate has not changed, and 25% has not been added. Does this mean that the product has not been taxed in the end?

      Because the "General" tax rate not only refers to the use of products imported from China, but also imports from many other countries use the same code and tax rate, and this time the 25% tariff is only for products imported from China, so the US Customs is not directly in the original The tax rate of the customs code is increased. It is necessary to pay attention to whether there is a "1/" or "2/" after the tax rate. Move the mouse to this position and you can see that there is an additional customs code:

Search for this customs code, and you can see that the detailed explanation is that this code requires an additional 25% tariff:

The corresponding tax form is shown as follows:

    If there are any updates on the website that are not timely or inaccurate, it is recommended that friends refer to the list issued by the U.S. Department of Commerce. Click to view the original list officially announced by the US Department of Commerce: US tariff list 1 , US tariff list 2 , and US tariff list 3 .

2: EU customs code (Taric Code): http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp

    Also enter the first 6 digits we found in the Chinese customs code, and select China-CN as the country of origin:

      The same is to compare the description that best matches the product, and find the corresponding EU customs code and tariff rate. Like the website in the United States, you can see that the tax rate is divided into many levels. The one applicable to China is ERGA OMNES (for everything, generally applicable), followed by the preferential tax rates of other countries.

        It is worth noting that the tariff rate for goods imported to different countries in the EU is the same, and the circulation of goods between the allied countries will no longer generate tariffs/value-added tax after entry.

3: Canada's customs code (Tariff Code): http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tariff/menu-eng.html

       It is a pity that the Canadian customs website cannot be searched intelligently like the United States. You must first find the latest version of the Customs Tariff. You can browse online or download the PDF file directly:

After opening, use "ctrl+F" to enter the first 6 digits of the customs code or the product name to search:

MFN Tariff, which is the most favored nation tariff, is also the tax rate applicable to the import of Chinese products into Canada.

4: Japan's customs code: http://www.customs.go.jp/tariff/index.htm

Select the latest release first:

It is also not possible to search intelligently. You have to manually turn to the corresponding chapter. For example, the first 6 digits of the water purifier we are looking for is 842121, so first scroll down to Chapter 84 and click on the tax rate:

Then drop down to the corresponding customs code in order. China is a member of the WTO, so we only look at the tax rate in the column of the WTO agreement:

5: Australia's customs code (HS Code): https://ftaportal.dfat.gov.au/

Find the code that best matches the product from the search results, and then click to see the details:

       This sentence means: Before the China-Australia Free Trade Agreement (ChAFTA), the tariff on this product was 5%, and the tax rate was canceled on the first day of the agreement, which is zero. It should be noted that if you want to enjoy the preferential tax rate brought by the China-Australia Free Trade Agreement, you must apply for the China-Australia Certificate of Origin in time when you ship, and submit it to the customs at the time of customs clearance to apply for zero tariffs. GST cannot be reduced or exempted. Please note that not all Chinese products can enter Australia tariff-free with a certificate of origin, and the tariffs of a small number of codes will be reduced to zero in the fifth year (that is, 2019) after the agreement takes effect.

       The countries where Amazon’s main sites are open to Chinese sellers have been listed. In principle, the first 6 digits of the code are common all over the world. From the perspective of the customs inspection policy and even the customs clearance rate of the invoiced goods, some adjustments to the customs code are made, and even the top 6 digits are different. This is also a situation that will be encountered.

      For code classification, we should not blindly pursue tax avoidance and cost reduction, but also consider the differences in actual goods, functions, materials, models, customs clearance probability, inspection results, etc. Out!