Customs duty rates on imports to the EU vary between zero and 217% with an average duty rate of 4.1%. As a consequence, the correct classification of your goods forms the cornerstone of good Customs Planning.
Based on a no-win, no-fee business model, our classification service provides you with a free analysis of the import classification codes you’re using. By applying our proven, class-leading methodology, our classification experts can quickly ascertain if – and how – you are overpaying. Past successes have included refunds that applied retrospectively to the previous three years of that client’s business.
Reduction in import duty costs as a result of re-classifications are normally achieved via one of three methods
Correcting the code
With over 16,000 commodity codes in the EC Customs Tariff, there are some very fine distinctions within certain categories. Dry noodles, for instance, attract a higher duty rate than for those containing water. Ensuring your goods are all correctly classified can result in significant savings.
Stripping down kits
Sometimes, it pays to strip down your imports into their constituent parts. Why? Some individual items attract lower rates of duty. For example, a 2% duty rate applies to stereo turntables – whereas no duty is charged for styluses if they are imported individually.
Building up kits
The reverse of stripping down kits is building them up. This approach involves presenting various components at the same time. In the case of digging machines, individual parts are subject to duty. However, presenting the parts together in unassembled kit form classifies them as a finished machine – which qualifies for a zero rate of duty.
If your goods are re-classified within a lower duty range, it can be beneficial to apply for a Binding Tariff Information (BTI). This type of ruling binds all EU Member States to the same conditions – ensuring all relevant authorities abide by the agreed classifications for your goods.