4 Eyes Ltd: VAT, Tax and Customs Consultants

Customs Services

Tariff classification - An importer or his agent is responsible for correctly identifying the classification of goods imported for duty purposes.  The customs (tariff) classification determines the base duty rate for the imported goods.  Classification (Tariff Code, HS Code and similar) is also much used to support VAT taxability, particularly of goods, and completion of other legal returns such Intrastat.  Often companies may be unaware of the complexities in this area and as a result can end up misdeclaring their imports and paying unnecessary duty, or achieving incorrect results in their VAT determinations.  4 Eyes Ltd can review tariff and related classifications and, where necessary, assist our clients in applying the correct classifications, including applications for legally binding tariff rulings (BTI) in respect of any particular commodity.

Origin - An importer or his agent must also correctly identify the origin of goods imported for duty purposes.  Origin may determine eligibility for reduced duty rates (e.g. Preference) or whether additional duties such as Anti-dumping or Countervailing duties must be paid in respect of the imported goods.  Goods may have both a preferential and a non-preferential origin, and these do not have to be the same.  Preferential origin is subject to certification processes which need to be effectively managed and maintained.

This is a technical and difficult area which can impose significant risk if the importer is unable to correctly determine and/or certify his origin declarations.  Incorrect declaration of non-preferential origin could lead to imposition of penalties or other sanctions.  4 Eyes Ltd can review origin determinations and assist our clients to develop systems and procedures to manage and maintain origin certification, and to apply for legally binding origin rulings (BOI) in respect of any particular commodity.

Customs Valuation and Transfer Price - For both customs and import VAT purposes the importer must correctly determine the value of the imported goods for customs purposes and for import VAT.  The customs value is the basis upon which duty is determined, according to the duty rate derived from the classification and origin of the goods.  The value for import VAT purposes is related to, but not the same as, the customs value.  Where companies are moving goods internationally between related entities, transfer pricing is an issue both for customs and for other revenue agencies, whose agendas and methods are not always easily reconcilable.  4 Eyes Ltd can help clients to devise robust procedures for the determination and review of customs and transfer price valuations, and assist our clients in discussions with the revenue authorities to achieve the most favourable results for your business.