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THE IMPORTANCE OF KNOWING THE CORRECT TARIFF CLASSIFICATION OF PRODUCTS. Understanding Tariff Classification All traded goods that enter a country must be categorized according to the Harmonized System The act of placing goods in the correct category is called classification .

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THE IMPORTANCE OF

KNOWING THE CORRECT

TARIFF CLASSIFICATION

OF PRODUCTS


  • Understanding Tariff Classification

  • All traded goods that enter a country must be categorized according to the Harmonized System

  • The act of placing goods in the correct category is called classification.

  • Classification determines how much duty will be collected.


  • Harmonized System

  • an international multipurpose product

  • nomenclature developed by the

  • World Customs Organization (WCO)

  • To achieve international uniformity in the classification of goods

  • To provide an updated nomenclature to take account of technological developments and changes in international trade patterns


Harmonized System

Section II Vegetable Products

Chapter 8 Edible fruits and nuts; peel of citrus fruit or melons

Heading 08.03 Bananas, including plantains, fresh or dried

0803.10 - Plantains

0801.90 - Other


  • ASEAN Harmonized Tariff Nomenclature

  • An 8-digit commodity nomenclature based

  • on the HS

  • It involves an alignment of national tariff

  • requirements of each ASEAN member

  • country

  • Started in 2004

  • The NEDA Board approved the adoption of AHTN 2012 on 18 Sept 2012


ASEAN Harmonized Tariff Nomenclature

Section II Vegetable Products

Chapter 8 Edible fruits and nuts; peel of citrus fruit or melons

Heading 08.03 Bananas, including plantains, fresh or dried

0803.10.00 - Plantains

0801.90.00 - Other


  • Tariff and Customs Code of the Philippines

  • The HS- and AHTN-based Philippine tariff

  • nomenclature which determines the tariff

  • classification and the corresponding rates of

  • duty is contained under Sec 104 of the TCCP.

  • The TCCP is being administered and

  • maintained by the Tariff Commission under

  • Executive Order No. 688 which empowers

  • the Tariff Commission to amend the

  • nomenclature but not the tariff rates.


  • FREE TRADE AGREEMENT

  • a legally binding agreement between

  • 2 or more countries to reduce or

  • eliminate barriers to trade, and facilitate

  • the cross border movement of goods,

  • services and investments between the

  • territories of the Parties


Benefit of FTAs to businesses

Trade in Goods (TIG): Tariff concessions for

eligible exports

  • FTAs do not award tariff benefits to all goods.

  • To qualify for preferential tariffs, goods must be (Philippine) originating.

Rules of Origin

An objective set of criteria set up to determine a product’s originating status.






  • How can you avail of these incentives?

  • Know the correct AHTN heading of your product.

  • 2. Verify if the product is offered under FTAs.

  • 3. Compare the tariff rates under MFN and FTA.

  • 4. Check the “Product Specific Rules or PSR”.


  • TARIFF CLASSIFICATION RULINGS

  • Section 1313a of the Tariff and Customs Code

    • TC Form 1 (Imports)

    • TC Form 2 (Exports)

  • Forms downloadable at TC Website

    • Submit accomplished form, together with samples, technical brochures (description, function, composition, etc.)

  • Filing Fee (P300.00 per article)


Advance Ruling issued

Accomplished TC Form 1


TARIFF COMMISSION

5th Floor Philippine Heart Center,

East Avenue, Diliman, Quezon City

Tel. (+632) 926-8731

Fax (+632) 921-7960

Website: www.tariffcommission.gov.ph

Email/s: [email protected]



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