How to understand Customs Jargon Part 2

                                    How to understand Customs Jargon

                                                             PART 2

                                               Chamber International 

HM Customs uses a form of terminology by traders. This guide seeks to explain 16 of the most commonly used terms.

8.Excise  -  Excise refers to duty payable on all items of the following nature: - alcoholic goods, - Tobacco  -  based products,  - Oil - based fuels, - Perfumes.  This duty applies domestically as well as on imported goods.

9.GSP -  GSP ( Generalised system of preferences ) is the regime whereby imported based in North America and Europe ( including Norway and Switzerland ) may import goods from developing countries which are authorised to issue a GSP certificate of Origin on a duty-free or duty-reduced basis.  A list of such countries may be found in the Customs Tariff.

10.IPR Inward Processing Relief (IPR) is the regime used to allow trader to import goods duty - free ( under import duty suspension ) into the EU as long as those goods are to be re-exported at a determined later  stage. The trader must gain prior authorisation from HMRC to operate this facility.

11.OPR  -  outward processing refiel ( OPR ) is the regime used to allow traders to export materials for processing overseas and then re-import the resulting product at an import duty liability based on the value of the overseas processing cost ( known as value - added). The tarder must gain prior authorisation from HMRC to operate this facility.

12.RGR - Returned Goods refiel ( RGR ) is a facility whereby goods exported from the EU up to 3 years previously may but with import VAT liability.

13.Duty suspension -  Duty suspension is a technique used avoid paying import duty paid on an imported consignment which is subsequently re-exported out of the EU having undergone processing in the EU under the Inward processing Relief ( IPR ) regime. The Importer must be authorised to use this facility by HMRC prior to carrying out such activities.

14.T1  -  T1 is the status given to goods in community transit,i.e. entering the EU to be carried across the EU to a point where they leave the EU again.  It is now part of the NCTS ( New community Transit system ).

15.T2  -  T2 is a document which used to accompany a consignment which is in EU free circulation but which crosses a non-EU country before re-entering the EU at another point, i.e. Germany - Italia via Switzerland. 

It is also used where goods are carried by sea between two EU countries on a ship which is registered and owned outside the EU.

16.Tariff Number  -  Also known as a commodity code, customs cooperation council number, harmonised system number , trade code number or BTN ( brussels tarif number) this is a system of coding and classification used in international trade which identified goods for duty, statistical and customs clearance purposes.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.