6 - importance of knowing the right tariff code of your product

7/28/2019 6 - Importance of Knowing the Right Tariff Code of Your Product

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THE IMPORTANCE OF

KNOWING THE CORRECT

TARIFF CLASSIFICATION

OF PRODUCTS
http://www.ph.all.biz/g15676/


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Understanding Tariff Classification

All traded goods that enter a country must be

categorized according to the HarmonizedSystem

The act of placing goods in the correct

category is called classification.

Classification determines how much duty will

be collected.


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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


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Harmonized SystemSection 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 - Plantains0801.90 - Other


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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


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ASEAN Harmonized Tariff

NomenclatureSection II V

egetable Products

Chapter 8 Edible fruits and nuts; peel of citrus fruit

or melons

Heading 08.03 Bananas, including plantains, fresh

or dried0803.10.00 - Plantains

0801.90.00 - Other


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Tariff and Customs Code of thePhilippines

The HS- and AHTN-based Philippine tariff

nomenclature which determines the tariffclassification and the corresponding rates of

duty is contained under Sec 104 of the TCCP.

The TCCP is being administered andmaintained by the Tariff Commission under

Executive Order No. 688 which empowers

the Tariff Commission to amend the

nomenclature but not the tariff rates.


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Hdg.

No. AHTN Code2012 DESCRIPTION

Rate of Duty (%)

ASEAN

MemberStates

Enjoying

Concession

MFN

ATIGA2012-2013 2014-2015

(1) (2) (3) (4) (5) (6) (7)84.01 Nuclear reactors; fuel elements

(cartridges), non-irradiated, for

nuclear reactors; machinery and

apparatus for isotopic separation.8401.10.00 - Nuclear reactors 3 3 0 Except LA.8401.20.00 - Machinery and apparatus for

isotopic separation, and parts

thereof3 3 0 Except LA.

8401.30.00 - Fuel elements (cartridges), non-irradiated 3 3 0 Except LA.

8401.40.00 - Parts of nuclear reactors 3 3 0 Except LA.


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FREE TRADE AGREEMENT

a legally binding agreement between

2 or more countries to reduce or

eliminate barriers to trade, and facilitatethe cross border movement of goods,

services and investments between the

territories of the Parties


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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

products originating status.


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AHTN 2012 DESCRIPTION FTA MFN RATE, % FTA RATE, % PSR

0803.90.00

(PH rate:

MFN 15%

PJEPA 0

AJCEPA 8)

Bananas,

fresh or

dried

Japan

AJCEPA

PJEPA

20 / 25 / 3

15.5 / 22.7 /

0

5.5 /9.1 /

10.9/19.1 /

0

CC

CC

Top traded products between Japan and Philippines

11


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AHTN 2012 DESCRIPTION FTA MFN RATE,

%

FTA RATE,

%

PSR

4418.10.00

(PH rate:

MFN 5%

PJEPA 0

AJCEPA 0)

Windows,

French-

windows

and their

frames

Japan

AJCEPA

PJEPA

0

0

0

CTH

CTH


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http://www.ph.all.biz/g15676/


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%

FTA RATE,

%

PSR

4418.90.10

(PH rate:

MFN 5%

PJEPA 0

AJCEPA 0)

Cellular

wood

panels

Japan

AJCEPA

PJEPA

5

0

0

CTH

CTH


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%

FTA RATE,

%

PSR

8544.30.12

8544.30.13

8544.30.14

8544.30.19

(PH rate:MFN 15/30

PJEPA 8/S

AJCEPA

8/15/30)

Wiring

harnesses

for motor

vehicles

Japan

AJCEPA

PJEPA

0

0

0

RVC (40) or

CTH

RVC (40) or

CTH


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How can you avail of these incentives?

1. 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.


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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)


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17Accomplished TC Form 1 Advance Ruling issued


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TARIFF COMMISSION5th 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]
http://www.tariffcommission.gov.ph/http://www.tariffcommission.gov.ph/


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Thank you!!

6 - importance of knowing the right tariff code of your product

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