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Archives for September 2020

FTA/EPA manual for reducing customs duty.

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When it comes to adopting FTA to reduce customs duty, there are so many complicated laws or regulations Traders need to learn.

That knowledge is needed both Importer and Exporter.
One understand but if the other one does not understand the FTA rule, it would be a nightmare when Customs audit carried out.

Let’s say if an Importer had required a self-certificate of origin to an Exporter but the Exporter does not understand the rule of FTA, this self-certificate was issued without evidence that the Customs requires.

In this situation the Importer likely to be denied preferential customs duty rate and to be fined penalty.

In order to avoid this situation, FTA manual should be referred to.
In this article,I’m going to introduce well written FTA manuals.

 

■OUTLINE OF RULES OF ORIGIN

This manual is written by Japan customs.it has many images to make it clear.


Source:Japancustoms OUTLINE OF RULES OF ORIGIN

 

 

■Outline of Rules of Origin for EPA in Japan

This manual can be used as a seminar slide.

Source:Japancustoms Outline of Rules of Origin for EPA in Japan

 

■Handbook on ROO for preferential Certificates of Origin

This manual is written by Singapore customs, it has many Charts and many examples.

Source: Singapore customs Handbook on rules of origin for preferential Certificates of Origin

 

■Comparative Study on Preferential Rules of Origin

This manual is written by WCO. Contents are so many that beginner can hardly read.
It is only for professionals.

Source: WCO Comparative Study on Preferential Rules of Origin

When you notice that your trading partner does not have enough knowledge of FTA, then you should send those manuals to the partner to understand the rule.
Otherwise, you would declare customs with a self-certificate of origin without evidence.

Classifing HS, based on Material or Function?

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US customs(CBP) is reclassifying various Rain gauges as other meteorological instruments under HScode 9015.80 rather than as other articles of glass under HScode 7020.00 or other articles of plastic under HScode 3924.90

At first, they considered that the essential character of this item is represented by its material glass or plastic.therefore they classified them as HS code of 7020.00 or 3924.90.

To the contrary, Europian Union classified Rain gauges as “Surveying, hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances”

Here are examples of Rain gauges classified by Germany customs.

Item image
Issued Country Germany
Reference DE1351/12-1
Issuing date 2012-05-11
Item name Rain gauge
Classified HS code 9015.80
Details & Customs Opinion Rain gauge, so-called rain gauge butterfly (Art. 23295), mainly consisting of an elongated rod with a total length of 110 cm of base metal with a stylized butterfly at the upper end, and a circular cup with a cylindrical glass vessel in “cm” and “Inch” is scaled (external form: see Figure in Appendix). It is used to determine the rainfall in private applications. Not pos 8306, there are goods of Section XVIII, except in Note 1 h) to Section XV of this. The product is considered “not electronic equipment for meteorology, not by UPOS. (HS) recorded 9015 10-9015 40, not on particular aircraft” classified.

 

Item image
Issued Country Germany
Reference DE26898/16-1
Issuing date 2017-01-16
Item name Rain gauge
Classified HS code 9015.80
Details & Customs Opinion Undertow. Rain gauge, essentially consisting of a wooden stick with a total length of approx. 37 cm, which is provided with a plastic fastening ring at the upper end. The ring serves to hold a cylindrical plastic container of approx. 24 cm in length and a diameter in the area of the opening of approx. 8 cm, which is provided with a graduation. The goods are packed in a plastic bag. The goods are used to determine the amount of rainfall in private areas of application. For the outer shape, see illustration in the appendix. The goods are classified as “equipment for meteorology other than those specified in subheading (TARIC) 9015 1010 10 to 9015 4090 00”.

Retrieved from:European Union Website

There was HS classification dichotomy between the US and EU, but now CBP is revocating its opinion.

If there is a classification conflict between Function and Material we need to consider GRI 3(a)

Then we can see “Surveying, hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances” is more specific than “articles of glass” or “articles of plastic”.

Therefore Rain gauge should have been classified as HS code 9015.80.