Kyle Grobler’s Post

Incorrect customs classification is expensive. And it puts your entire business at risk. Here’s why customs classification matters: → It determines how much duty you pay → It affects your eligibility for trade agreements → It controls how fast your goods move Misclassification causes serious problems: • You could overpay or underpay duties; both hurt • It might block you from preferential tariff programs • It creates legal complications and increases penalty exposure And the consequences are real: • Customs delays damage supply chains • Regulatory non-compliance can result in fines or seized goods • Risk of audits and long-term scrutiny increases So why does this still happen? Because classification is complex: → Tariff codes vary by product, country, and regulation → Rules change frequently → Internal teams lack training or resources Here’s how to fix it: 5 ways to prevent customs misclassification: → Train staff on classification rules and systems → Use consistent and well-documented procedures → Cross-check with suppliers and customs brokers → Monitor classification changes under new trade deals → Conduct regular audits of product classification To improve accuracy: • Use the Harmonized System (HS) consistently • Don’t guess, consult up-to-date databases • Keep classification records tied to every transaction To reduce risk: • Assign classification responsibility to trained experts • Create internal accountability • Invest in digital tools that validate product codes Accurate classification does more than avoid pain: → It saves money → It accelerates shipping → It builds trust with customs authorities Mistakes here are not small; they’re strategic vulnerabilities. If you trade globally, classification isn’t optional. It’s foundational. Make it a priority before it becomes a liability.

Overpaying duty? You might be without knowing it 💰 With 84 million import/export declarations crossing UK borders in 2024 alone, each one relying on the right tariff code, the margin for error is big. A wrong code can cost you twice: once in overpayments and again in fines. The good news? Most errors follow predictable patterns. And with the right system in place, classification can be both straight forward and fully compliant. Here are the 5 mistakes we see most regularly: 1️⃣ Copy-paste culture: Recycling old HS codes without checking updates 2️⃣ Product tweaks: A new feature or material could mean a different duty rate 3️⃣ Incomplete data: Classification needs full specs. The details matter 4️⃣ Changing trade deals: FTAs and WCO updates happen all the time. Your system needs to keep up 5️⃣ AI alone isn’t enough: For accuracy you need automation + expert oversight It's worth knowing that if you’ve overpaid, HMRC allows claims for excess duty up to three years. But, of course, we think the smarter move is never having to reclaim at all. Check out our latest guide on getting tariff codes right 👇 Drop us a line if you'd like a review of your codes to see if you're running the risk of overpaying. https://lnkd.in/efJHPDKG #TariffCodes #Customs #Classifications #CommodityCodes #InternationalTrade

𝗖𝗨𝗦𝗧𝗢𝗠𝗦 𝗢𝗥𝗜𝗚𝗜𝗡 | The Court of Justice of the European Union has once again delivered a significant judgment on non-preferential origin rules. In the EU, the Union Customs Code – Delegated Act (UCC-DA) sets out the so-called primary product-specific rules (PSRs) in Annex 22-01 for specific goods. These rules are designed to identify the country where a product has undergone its “last substantial transformation”, and are based on one (or a mix) of three criteria: → a change in tariff classification                                    → a value-added threshold → a specific processing requirement In the recent Stappert case (C-210/22), the Court examined the PSR for HS 7304 41 (cold-formed stainless steel tubes/pipes), which relied solely on a tariff shift (CTH + from HS 7304 49) The Court held that this rule is invalid if it ignores processing operations which – without the required tariff shift – nevertheless represent a stage of production where the goods: ‣ acquire their intended use, ‣ gain new and specific properties or composition, and ‣ no longer require further substantial qualitative changes. (cf. Renesola UK, C-209/20, para 33). In this case, the Court reiterated that a processing or working operation may still confer origin even if the Annex 22-01 PSR is not satisfied (para 24). However, it held that the cold transformation of tubes and pipes classified under HS 7304 11 to HS 7304 41 didn’t count as a “last substantial transformation". While the process irreversibly changed the tubes/pipes (e.g., by reducing their size) it didn’t change their purpose, composition, or how they’re used. They could still serve as pipelines and meet the required standards. That said, the broader takeaway is clear: origin assessments cannot be reduced to a box-ticking exercise. While a tariff shift is often a strong indicator, it is not the only test. Substantial transformation can also occur without satisfying the Annex 22-01 criteria. This ruling underlines the need for a careful, case-by-case analysis of non-preferential origin. The Annex 22-01 criteria cover most situations of last substantial transformation, but not all. In today’s turbulent tariff and trade landscape, establishing the correct origin is becoming increasingly important. #customs #trade

Does Your 'Common Sense' on HS Classification Apply Abroad? This court case may serve as an important indicator of how interpretations of HS classification can differ from country to country. A common-sense rule of international trade: "The same item, the same HS code." But what if there was a country where that rule could change based on a judge's personal conviction...? Here example of the Israel case, a shocking reality is unfolding: a unique standard called "legislative purpose" —based on the question,  "Is this for the good of society?" "Does taxing this product serve a social purpose?" —is taking precedence over the WCO's (World Customs Organization) HS classification standards, which aim for global uniformity. Watch the video explanation on YouTube: 🎦https://lnkd.in/gd3V7BsT For example: 1. Customs classified a vehicle's fuel tank lock as an "automobile part" (HS 8708.99), but the court favored its "social purpose of theft prevention" and supported the classification of "lock" (HS 8301.20). 2. A relaxation product, which the WCO's international opinion classified as an "alcoholic beverage" (HS 2208.90), was overturned on the grounds that it causes "no social harm" and was judged to be a "food preparation" (HS 2106.90). 3. Even a simple pulse watch, which customs taxed as a general "measuring instrument" (HS 9031.80.90), was deemed non-taxable by the court, which recognized its added value in "promoting health." These are all cases where objective judgments made by customs, based on the WCO's HS classification standards and the product's characteristics, were overturned by a court's unique "purpose." How is such a thing allowed? This is just the tip of the iceberg of "differences in interpretation" that can occur worldwide. Care to take a peek into the deep, and slightly scary, world of international trade? The content of this article is based on an article from Omer Wagner the "World Customs Journal". https://lnkd.in/gEKz5_hA ✅ Image-based HS searches enhance the accuracy and efficiency of your HS classification tasks📸 By visually referencing actual rulings issued by customs authorities, you can identify the correct classification faster and significantly reduce your research time. If you are… A beginner: Image-based explanations let you see results quickly, while also building a solid foundation of HS knowledge. An experienced professional: Boost your classification speed and accuracy to finish your work sooner than ever. I personally rely on “Visualised Research” in my daily posts.🔍  I invite you to experience its benefits for yourself. Learn more here ▼ 🔗https://lnkd.in/gjw5sXs3 This e-book is filled with unexpected insights that will be particularly useful for seasoned pros. Rest assured that your purchase information will not be disclosed to any third party.

🚢 Top 5 Customs Mistakes That Could Cost Your #Business 🚢 أهم 5 أخطاء جمركية قد تُكلف شركتك الكثير Customs clearance is a critical step in every #supply_chain. Yet, many businesses face delays, fines, and extra costs because of small but costly errors. Here are the most common ones we see: 1️⃣ Wrong or incomplete documents - مستندات خاطئة أو غير مكتملة 2️⃣ Late filings that miss regulatory deadlines - تأخر في تقديم المستندات مما يُعيق الالتزام بالمواعيد النهائية التنظيمية 3️⃣ Unclear or non-compliant labeling - وضع العلامات غير الواضحة أو غير المتوافقة 4️⃣ Incorrect HS code classification - تصنيف رمز النظام المنسق غير صحيح 5️⃣ Underestimating duties & taxes - التقليل من الرسوم والضرائب Each of these mistakes can lead to shipment holds, financial penalties, and unhappy customers. At Semah Warehousing, we specialize in helping businesses avoid these pitfalls by ensuring documentation accuracy, regulatory compliance, and smooth coordination with customs authorities. 💡 Our mission: to keep your goods moving, your costs under control, and your supply chain stress-free. 💡 مهمتنا: ضمان نقل بضائعكم، وضبط تكاليفكم، وضمان سلاسة سلسلة التوريد. 📩 Reach out today and let’s talk about how we can simplify your customs process. 📩 تواصلوا معنا اليوم لنناقش معكم كيفية تبسيط إجراءاتكم الجمركية. Reach us on: 📲 00966507435344 or visit our website: 💻www.semahwarehouses.com #LogisticsKSA #SupplyChainSaudi #BusinessKSA #Riyadh #CoLoading #LTLShipping #InventoryManagement #SmartLogistics #3PLKSA #FreightSolutions #WarehouseEfficiency #vision2030 #SaudiBusiness #delivery #المملكة_العربية_السعودية #رؤية2030 #النقل #التخزين #سلسلة_التوريد #سمه #التوزيع #الرياض

🚨 Think customs classification is just paperwork? Think again. Getting your tariff codes right isn’t optional — it’s the backbone of smooth international trade. Misclassified goods can lead to costly disputes, delays, and compliance headaches. Here's the secret sauce: ✅ Gather all necessary docs upfront ✅ Dive deep into your product details ✅ Leverage powerful tariff tools like the Harmonized Tariff Schedule ✅ Consult with trade pros — attorneys, classification experts, trade associations, oh and us! ✅ Regularly review and update your classifications Proactive, detailed, and tech-driven is the way to stay ahead. Tools like Trade Harmonizer’s Trade Compliance Solutions make it easier to stay compliant and avoid surprises. Don’t leave your global trade to chance. Invest in accurate classification — your bottom line will thank you. Read more in this weeks blog: https://lnkd.in/e7WDwvQN Are you confident in your classification game? Let’s chat.

🗞️ Customs & Compliance Shifts You Need to Know in 2025 • From 1 September 2025, the EU’s ICS2 Release 3 becomes mandatory for all road, rail, air, and maritime imports. ENS / Entry Summary Declarations must be filed before goods arrive at EU borders. • The European Commission published a report calling for stronger customs controls and deeper cooperation on product compliance, especially with the growth of e-commerce imports. Customs stopped non-compliant goods ( ~13 items per million released in 2024), and EU wants to modernize enforcement. • Supply chains in Europe are under pressure: not because of panic, but by a shift toward collaboration and data sharing. Port operators, logistics players, and cargo owners are aligning systems to reduce bottlenecks and increase visibility across borders. • Also, under the umbrella of EU Customs Reform, expect structural changes: proposals for a new EU Customs Authority and Data Hub to better coordinate risk management across customs and market surveillance entities. ⸻ 🔍 Why It Matters for Businesses (and why Elaris keeps an eye here) • If your supply chain is not ICS2-ready, your shipments risk being held before they even depart. • Non-compliance with product standards (safety, environment, labelling) isn’t just a fine, it’s denial of access to the EU market. • Visibility and alignment across partners are no longer “nice to have” - they’re the backbone of resilient trade. • The compliance burden is increasing, but so is the opportunity: early adopters will gain advantage in speed, trust, and cost control.

The Finance Act, 2025 has updated Section 18 of the Customs Act, 1962, which deals with Provisional Assessment (when Customs allows clearance of goods but final duty is yet to be decided). Key points: 1. Time limit for finalization • Provisional assessments must be finalized within 2 years. • Extension is possible if there’s a valid reason, but only by the Principal Commissioner/Commissioner. 2. Pending cases • For old cases (pending before 29 March 2025), the 2-year limit will count from 29 March 2025. 3. Submission of documents • Importer/exporter must submit all documents or reports (like chemical test reports) within 14 months. • Customs officers must also complete enquiries and forward them within 14 months. 4. If documents not given • Customs will finalize based on available records but will give the importer/exporter a chance to explain (natural justice). 5. Quicker closure • Ideally, the assessment should be finalized within 3 months after documents/enquiry are complete. 6. Payment during provisional stage • Importers/exporters can pay the duty (with interest) anytime during the provisional stage. This amount will be adjusted at finalization. 7. Final order • A speaking order (reasoned order) must be issued. • If the final duty differs from provisional duty, importer/exporter must be given a chance to respond. 8. Refunds/Extra duty • If more duty is payable, importer/exporter must pay with interest. • If refund is due, it will be processed as per law. 9. Bond & security • Once assessment is finalized, the bond/security given earlier will be released, if no dues remain. • If dues remain unpaid for 90+ days, Customs can recover from security. 10. Special cases • Rules also apply to Project Imports. • A new Single Unified Multipurpose Electronic Bond can be used (instead of multiple bonds at different ports). 11. Monitoring • If any provisional case is pending beyond 17 months, it must be reported to the Commissioner, who will personally monitor it. Why this matters? • Brings clear timelines → more certainty for importers/exporters. • Reduces delays and improves transparency. • Allows trade facilitation while ensuring revenue protection.

An HS code (Harmonized System code) is a globally standardized numerical code used to classify traded products for customs purposes during international shipping and trade. The HS code system, developed by the World Customs Organization, helps customs authorities and businesses identify products, determine duties, apply import/export regulations, and collect trade statistics efficiently. ### HS Code Structure and Meaning - The code typically consists of six digits standardized worldwide: the first two digits represent the product chapter, the next two denote the heading (subcategory), and the final two specify further details (subheading)[6][3]. - Additional digits may be added by individual countries for further classification, such as the U.S. Harmonized Tariff Schedule (HTS) or the Indian Harmonized System of Nomenclature (HSN) codes, leading to country-specific rules and duty rates. ### Example: Electric Product (Television) Suppose the product is a television: - The HS code for televisions generally starts with “85,” which is the chapter for "Electrical machinery and equipment and parts thereof" - Example: "8528.72" could be an HS code for a color television receiver, where: - 85 = Electrical machinery and equipment - 28 = TV receivers - 72 = Specific technology type or display[3]. For more country-specific details, this code may be further extended (e.g., "8528.72.21" in some customs forms). ### Importance - HS codes are critical for accurate duty calculation, regulatory compliance, and smooth customs clearance[1][2]. - Using incorrect HS codes can result in delays, excess duties, shipment rejection, or even fines[1][7]. ### In Summary - HS code: Six-digit global product classification code for international trade. - Harmonized tariff code: Locally extended version of the HS code (like HTS in the USA, HSN in India), used to set specific import or export duties and compliance rules. - Example for electric product: Television (Possible HS code: 852872)[3]. Always verify the specific HS or tariff code for a product via official customs resources or tariff lookup tools for each export/import market[3] #Globaltradecomplince

| REAL CASE: CUSTOMS REJECTED C/O FORM E BECAUSE “MANUFACTURER ≠ SELLER & EXPORTER” – IS IT REASONABLE? | During customs procedures, CCN recorded a rather unusual case: a C/O Form E was rejected simply because the manufacturer ≠ seller ≠ exporter. Let’s break it down quickly 👇 🔎 Company’s documentation set: - Invoice: Seller A (Hong Kong) – Buyer B (Vietnam) - B/L: Shipper A – Consignee B - C/O Form E: Exporter C – Consignee B – Seller A shown in Box 7, ticked Box 13 (Third Party Invoicing) - Customs declaration: Seller A – Manufacturer D – Importer B 👉 Customs rejected: because “Manufacturer ≠ Seller & Exporter” 📍 Analysis 1️⃣ Box 1 – Exporter on C/O Form E - According to Article 17 & Appendix III – Circular 12/2019/TT-BCT: the issuing authority has already verified origin before issuing the C/O. 👉 Exporter ≠ Manufacturer ≠ Seller is fully compliant. Customs cannot reject on this ground. 2️⃣ Third Party Invoicing Clearly stipulated in Appendix III – Circular 12/2019/TT-BCT: - Box 7: State name & country of third-party invoice issuer. - Box 10: Invoice number & date. - Box 13: Tick “Third Party Invoicing”. 👉 The company declared correctly, invoice is valid, not a reason to reject C/O. 3️⃣ Relationship between Exporter – Manufacturer – Seller - ACFTA only requires that goods meet origin criteria. - International trade flows often go through intermediaries; seller ≠ exporter ≠ manufacturer / omni-channel is common and does not affect origin. 👉 Customs rejecting on this basis exceeds ACFTA provisions. 4️⃣ Customs authority to verify C/O (Article 15 – Circular 33/2023/TT-BTC) - Article 15: Customs may only verify C/O based on origin rules in the Agreement and guidelines from the Ministry of Industry and Trade, comparing C/O information with supporting documents. 👉 They have no right to impose conditions like “manufacturer must match seller/exporter.” ✅ Conclusion: Customs rejection of C/O because “manufacturer ≠ seller & exporter” has no legal basis, is inconsistent with ACFTA and current regulations. 📩 Have you ever faced a similar situation with C/O procedures? Contact CCN Vietnam today for timely consultation and support. #COFormE #ImportExport #CustomsProcedures #CCNVietnam ------------------------------------------------------------- CCN VIETNAM INTERNATIONAL TRADING CO., LTD 📌 Address: Villa E24 - N05C Dich Vong Urban Area, Lane 6 Thanh Thai Street, Cau Giay Ward, Hanoi, Vietnam 📞 Contact now: +84 969 802 288 🌐 Website: https://ccnvietnam.vn/