The tax classification of goods is a point of extreme importance. The correct tax classification of the product can bring benefits of reducing the tax burden in the import process or even exempting some taxes temporarily. This measure will define whether a product needs a license for shipment, or whether there is any anti-dumping measure in place that may result in increased costs of the product being traded.
In addition there may be quotas for the importation of the product resulting from commercial agreements which provide that certain goods may be imported with a margin of preference corresponding to a discount on the import tax. In this case, the importer will have the discount on the said tax, provided that the import is made up to the limit (in weight or value) defined in the agreement and for a certain period of time (intra-Community imports). There may also be non-tariff import quotas that limit the amount allowed to enter the country (by weight or value) without attaching to the tariff benefits.
Incorrect classification of a commodity or goods can lead to fines, delay in release and rework to issuance of documents. Therefore, it is essential to consult specialists on interpretation of the composition and origin of your product in order to classify it correctly.
Grupo Map Business counts on specialized professionals who have vast experience in the accounting area and will help you to make the correct classification.
Do you want to know more? Contact us!