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Legal Eagle We would suggest that Members consider


keeping some standard information available regarding the law and customs procedures, which can be sent to their customers to resolve queries. If nothing else, we would suggest that Members familiarise themselves with three key public notices: 199 covering import procedures and customs debt, 275 which deals with export procedures, and 600 which covers tariff classification. The main piece of advice that we would give


any Member clearing goods for a UK or EU- based customer is to act only as a direct representative. The relevant section of Public Notice 199 clearly states: “If an agent acts as a direct representative of the principal, the principal is solely liable for the customs debt.” Referring to tariff classification, clause 1.5 states: “You, as the importer or exporter, are responsible for the accuracy and completeness of the information given in a declaration, notification or application. [Union Customs Code Regulation 952/2013 Article 15 – provision of information to the customs authorities refers].”


Dealing with clients However, how do you deal with the client who does not know or understand its obligations? BIFA would advise Members never to provide a full tariff heading. We are aware that some Members provide the first six digits of the HS code and a link to/or a copy of the relevant pages of the customs tariff. The customer is then asked to select the correct tariff heading and advise the customs agent, who will then use the customer-provided tariff classification to complete the customs declaration. On all correspondence, it is strongly advised


that reference is made to the need to return documents and provide information as quickly as possible in order to avoid delays and the consequential additional storage charges, etc. In this stricter regulatory environment, it is important that members consider what steps they take to remain compliant. The key steps are for Members to understand their regulatory and contractual responsibilities and how to fulfil them. Staff Members should be made aware of a company’s internal operational and compliance procedures. Cornerstones of these procedures should include the incorporation of BIFA’s STC or requesting a separate authorisation where applicable to act as a direct representative. Staff should also be aware of what questions can be asked of, and guidance given to, clients without compromising the Member’s position. The last points to remember are where to find


key information and how to keep records of all conversations, etc.


February 2018 15


30th anniversary of the Harmonised System (HS)


This year sees the 30th anniversary of the Harmonized System (HS) which came into effect on 1 January 1988.


The HS allows a world of many languages to speak with one. A multipurpose nomenclature for trade, the HS is one of the most successful instruments developed by the World Customs Organization (WCO). The convention has 156 contracting parties and the HS is used by more than 200 countries, territories and customs or economic unions. It forms the basis for customs tariffs and statistical nomenclatures around the world, and is used for around 98% of world trade. As an international standard with global application, the HS plays a key role in facilitating world trade.


Multiple uses


The HS is used as the basis for customs tariffs, trade policies and quota controls. It facilitates collection of international trade statistics, data exchange, economic research and analysis. It is used for establishing the rules of origin and in trade negotiations such as the WTO Information Technology Agreement and Free Trade Agreements.


It allows for monitoring of controlled goods, for example, chemical weapons precursors, hazardous waste and persistent organic


pollutants, ozone depleting substances and endangered species, and many customs controls and procedures, including risk assessments and profiling, electronic data input, and matching and compliance activities.


Sixth edition Currently the WCO is in the sixth edition of the HS and in the process of preparing the seventh (HS 2022). During the life of the HS, there have been 60 meetings of the harmonized system committee (HSC), where 4,144 agenda items were discussed, ten recommendations were produced concerning the application of the HS Convention, 2,280 classification decisions made and 871 classification opinions adopted to ensure the harmonization of classification. On the occasion of the 30th anniversary, the WCO calls for the international customs community, in partnership with the international trade community, to continue to be proactive and pursue its efforts to develop and maintain the HS, especially in terms of the application and uniform interpretation of the HS, so as to safeguard and further grow the benefits of this success.


Reproduced from CLECAT Newsletter Issue 1. 2018.


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