Tariff classification – don’t take a chance

The most frequent reason for Customs stops is incorrect tariff classification. Which is why, even if there is the slightest doubt, it’s in the importer’s best interests to be proactive and approach SA Revenue Service for a determination, says Customs specialist Russell Mackenzie. “The three fundamental elements of a Customs declaration are value, tariff and country of origin,” says Mackenzie. “There is substantially more information declared, but it is primarily against these three elements that Customs applies its risk profiling.” Schedule 1 Part 1 of the Customs tariff is one of the cornerstones around which Customs profiles: • Import control (permit and prohibition), • duties and VAT due, • in-bond liabilities, • possible anti-dumping duties, • rebates (industrial and general), • refunds (sometimes promulgated with retrospective effect dependent on tariff) • and drawbacks. “Section 47 of our Customs Act makes provision for tariff determination. This facility is similar to the intent and ethos of the “Advanced Tax Ruling” package, and is equally binding on both Sars and the taxpayer with regard to the classification of the goods so determined. “If you are a legitimate trader, and in it for the long haul, the importance of these determinations and having them in advance should be considered as a key component of your risk management strategy.”