Complete Guide to Obtaining Your Product’s Tariff Classification

The tariff classification is a crucial element in international trade. It is the numerical code that classifies a product within the harmonized system of nomenclature, determining the applicable tariffs, restrictions, and regulations in import and export processes. This article provides a comprehensive guide on how to efficiently and accurately obtain your product’s tariff classification.

What is the Tariff Classification?

The tariff classification, also known as the “HS Code,” is a code typically composed of 6 to 10 digits that standardizes product identification in global trade. This code:

• Establishes the tariff to be paid.
• Determines if there are special restrictions or permits.
• Is required for customs declarations in any country.

Importance of Tariff Classification in International Trade

1. Legal Compliance: Ensures your shipments adhere to international customs regulations.
2. Accurate Costs: Helps calculate duties and other taxes.
3. Avoid Delays: Misclassification can lead to fines, penalties, or shipping delays.
4. Trade Agreement Benefits: Identifies if your product is eligible for agreements like the Colombia-US FTA.

Steps to Obtain Your Tariff Classification

1. Understand the Harmonized System (HS)

The Harmonized System is the global standard used to classify goods. In Colombia, the customs tariff is based on the HS by the World Customs Organization.

• HS Structure:
• Chapters (2 digits): General grouping of products (e.g., 09 for coffee, tea, spices).
• Headings (4 digits): More specific classification within the chapter.
• Subheadings (6 digits or more): Detailed specification of the product.

2. Describe Your Product

Prepare a clear and detailed product description, including:

• Materials.
• Use or application.
• Manufacturing process.
• Physical state (liquid, solid, powder, etc.).
• Packaging or presentation.

3. Consult the Colombian Tariff

Access the customs tariff online through the official website of the Dirección de Impuestos y Aduanas Nacionales (DIAN). Search by keywords related to your product.

4. Perform an International Search

Use global tools such as:

• WCO Harmonized System (HS).
• ProColombia’s Tariff Finder.
• Customs agencies in other countries for international references.

5. Validate with an Expert

If in doubt, consult:

• A customs broker.
• Foreign trade consultants.
• Local Chambers of Commerce.

Common Errors When Classifying a Product

1. Insufficient Descriptions: Lack of technical details can lead to incorrect classifications.
2. Ignoring Components: Products with multiple materials may have different classifications.
3. Overlooking Updates: The HS is updated periodically, which can change classifications.

Using the Tariff Classification in Exports from Colombia

• Required Documents: The classification must be included in the DEX (Export Declaration).
• Trade Agreement Benefits: Use the classification to verify if your product qualifies for tariff preferences under FTAs.
• Customs Procedures: Avoid customs issues by ensuring the classification is correct.

Conclusion

Obtaining the correct tariff classification is essential for any international trade operation. Following these steps will allow you to classify your products accurately, avoid legal issues, and leverage benefits like trade agreements. Always consult with experts to ensure the success of your exports.