Who is responsible for classifying my cargo (i.e. obtaining a 10 digit commodity code)?
- On 23rd September 2019
HMRC’s computer system relies on numbers and not words when calculating tax charges for your imported cargo. That is why we use ten digit commodity codes instead of descriptions.
I must apologise to most importers if a statement in HMRCs online literature comes as a shock to them:
“You, as the importer or exporter are responsible for the correct tariff classification of your goods. Union Customs Code Regulation 952/2013 Article 15 refers”
https://www.gov.uk/guidance/why-you-must-classify-uk-imports-and-exports
This is because you (or your client) will know the product better than a customs clearance agent, and unlike us, will know what it looks like. After all, you would have done the research on the product before ordering a large shipment from overseas, and whilst we agents will do our best to show you what choices are available, it is you the importer that HMRC will take legal action against should an incorrect classification code result in underpayment of HMRC taxes.
Even when the mistake is an innocent one, they can make you repay unpaid taxes for up to four years prior to the mistake and this can add up over time, so it is advisable to get this code classified correctly from the start. If you give Broadside good notice I can email you a form to complete and email onto the customs classification department. They will email you back the commodity code number which you can pass onto your customs clearance agent (Broadside) so that the right amount of duty, VAT and other taxes are paid on import.