News

AFA News



Understanding Tariffs for Import and Export

Tuesday, July 19, 2016

 

Before AFA Members think about importing or exporting a product, you need to understand how it is classified for customs tariffs and duty in each market of interest. The Harmonised Commodity Description and Coding system is generally referred to as the “Harmonised System” (HS). It is a multi-purpose international product classification nomenclature developed by the World Customs Organisation (WCO) and is used to classify traded products.

 

The Harmonised System comprises approximately 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. It is supported by well-defined rules in an attempt to achieve uniform classifications around the world. The system is used by more than 200 countries as a basis for their customs tariff and for the collection of international trade statistics and duty revenue.

Export

Australia uses an eight-digit code to classify goods for export. The first six align with international classification standards, while the last two digits are specific to Australian exports. The classifications are not static and are subject to change. It is very important to keep up-to-date with any changes as they occur.

The Australian Harmonized Export Commodity Classification (AHECC) is usually updated every January and July and up-to-date versions of the classifications can be found at the ABS Website.

Warning: Failure to properly classify your product could lead to incorrect taxation on your exports and the potential loss of the product.

AUTHOR: Ian Smith, CEO of CargoHound


 


In the News

Search


Tags


Archive


    Our Partners
            
                   

      
     
    In the News
    Facebook Updates
     
    Twitter Updates