Tariffs or customs duties are taxes applied to the importation of goods, imposed by the customs authorities of each country. The legislation applicable to international trade uses a tariff classification that affects all goods. This classification may be based on the Harmonized System or on the Combined Nomenclature, known as the TARIC code.The application of the TARIC code requires detailed knowledge of the materials composing a commodity, its use, and the intended destination for its manufacture. Additionally, it is essential to have a detailed description of the commodity, its presentation, and any additional information enabling correct classification. Otherwise, importers may face significant penalties.Bull Importer efficiently manages customs procedures, avoiding delays in the delivery of imported goods and other consequences, such as administrative penalties.
What types of tariffs exist?
The correct classification of goods is crucial for calculating tariffs and other applicable taxes on importation. Depending on the TARIC code, different tariffs will be applied.Depending on the country of origin and any bilateral agreements with the receiving country, tariffs may be reduced. Preferential rates also apply when the country producing the goods benefits from the importing country’s policy. In certain cases, there may be operations exempt from paying tariffs and other import duties.The types of tariffs that may be applied are as follows:
Ad valorem
Ad valorem tariffs are calculated by applying a percentage to the taxable base or customs value. This is the most common type of customs duty.
Specific
Specific tariffs are applied based on the units of measurement of imported goods (tons, liters, square meters, etc.).
Mixed
The mixed tariff is the product of combining ad valorem and specific customs duties.
Compound
In this case, different tariff groups are established, but only one is applied. To choose the appropriate one, calculations of the different groups are made, and one is chosen according to regulations.
Associated with Agricultural Policy
The EU’s agricultural policy establishes the application of a type of tariff for agricultural products. Generally, a combination of mixed and compound tariffs is used for these types of goods.Customs brokers are responsible for classifying goods and applying the corresponding tariff according to legislation. Additionally, they are responsible for inspecting goods at the border and ensuring compliance with regulations.Customs procedures can be very complex for importers. To avoid issues such as delays in receiving goods or fines, it is most convenient to delegate these procedures to a trusted company like Bull Importer, with extensive experience in customs procedures.
