Avoid Penalties by Knowing the Correct Classification Codes

If the UK leaves the EU without a deal then, from 1 January 2021, duty may become payable on goods you import into the UK from European Suppliers.

Dated: 28 October 2020 Author: Terri Bruce, Director of  Indirect Tax for SMEs and Not for Profits

In order to check the level of duty payable, you will need to use the UK Global Tariff which is available on-line. It is essential that you use the correct commodity code for the products you import.

This can be a complex process as the UK Global Tariff contains nearly 12,000 commodity codes and it is essential that you use the right one. Do not assume that the commodity code which you have included on your intrastat declarations is the correct one to include on your import declarations as this can create costly errors.

If you think that you could be incurring significant levels of duty on goods imported after 1 January 2021, you may wish to consider using customs procedures to mitigate the cost. You may find that you can achieve absolute savings and cash flow savings by using procedures such as:

• Transit
• Inward processing relief (“IPR”)
• Customs Warehousing
• Outward processing Relief (“OPR”)

Useful Links:

• Brexit: VAT and Customs Advice Services
• Top 20 CPC Codes (pdf)
• UK Global Tariff 

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