HS Tariff code for goods exported to Shanghai

Question posted by Richard Biggle, on behalf of ThyssenKrupp System Engineering Ltd. in RH19

How do we find a HS Tariff code for goods that we will export to Shanghai?

Our Customer is considering purchasing some PLC controlled assembly machines from the UK - that will be installed at a major car assembly plant in Shanghai province.

We want to know what taxes, tariffs and rules apply to export of such equipment? We have been requested to deliver DDP Incoterms 2010.

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Howard Marsh, on behalf of Descartes in SO40.

HMRC provide a Tariff (HS Code) Classification helpline or you can use https://www.gov.uk/trade-tariff

If you need detailed assessment of the product and the appropriate HS (UK Tariff) code, my sister company Bell Davies can provide classification services.

There are no current UK export taxes. You will need to ensure a UK export declaration is made for the goods to be legally exported from the UK. There is likely to be Chinese taxes and duties for the import, along with loads of other costs. In that I would not recommend the use of DDP (Delivered Duty Paid); as you will be responsible for the UK leg from your premises to the UK port, all the freight costs to China, the unloading in China, the customs clearance in China, the payment of all taxes and duties in China and the onwards delivery from the China Port to factory. That could be a VERY big and open ended cost for you!

We provide a UK custom clearance system for UK exporters and importers, Freight forwarders, warehouse operator and other third party logistic providers. Enabling them to submit the necessary legal UK export / UK import declaration.

If you are in the Liverpool area next week we will (along with our sister company Bell Davies) be exhibiting at Int. Trade Expo 2014 at ACC Liverpool 10-11th June Stand 111 if you would like to come along have a chat and demo of what we can provide.

I hope that helps

Howard

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Paul Hickey, on behalf of Mercator Cargo Systems Ltd in PO1.

Hi Richard

You can find tariff codes here - https://www.gov.uk/trade-tariff/sections. Your machine will be in chapter 84 or 85 I would think. If you have trouble identifying the correct code I would be happy to help and I would also very much like to quote you for the transport (as thats my job!) you can contact me on 02392 756575 or james@mercatorcargo.co.uk.

Thanks
James

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Hi Richard, to reiterate the above advice, https://www.gov.uk/trade-tariff/sections is the Revenue and Customs website for clarification. There is also a Customs tariff classification helpline on 01702 366077. We have partners in Shanghai who can clear and deliver, and also arrange payment of the VAT & Duties on our behalf if terms are DDP, but as a previous advisor has already commented, I would try to change the INCOTERMS 2010 to DAP Shanghai (The DAP {Delivered at place} term is not really valid without the named place of delivery, and it means your are liable for all charges up to delivered door, but excluding local duties and taxes. Please do not hesitate to contact me should you require any further information on 0121 332 2102 or chris.white@ccfreightcom

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Hello Richard,
Try looking at http://madb.europa.eu/madb/indexPubli.htm for information about the requirements in China.

I also would strongly recommend you change INCOterm from DDP to DAP named place. For all the reasons given in above responses and also because it is simply not cost effective for your customer. If you work out all the costs and add them to your sales price you will be ignoring the fact that a Chinese importer can most likely recover some of the taxes and therefore reduce the overall costs.

Regards,
Susan

enquiries@morley-consulting.co.uk
www.morley-consulting.co.uk

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Mark Baulch, on behalf of Hampshire Chamber of Commerce in Basingstoke.

Hi Richard,

I can put you in touch with both your local Chamber of Commerce and the one based in China, as they should be able to help you. Send me your contact details, mark.baulch@hampshirechamber.co.uk

Many thanks,

Mark.
Regional Coordinator, Overseas Business Network initiative

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HMRC Advisor, on behalf of HM Revenue & Customs in G67.

Dear Richard

Information on the Customs requirements for exporting is given in HMRC Public Notice 275. All notices can be found on our website www.hmrc.gov.uk under Quick Links > Library > Official Statistics – Publications – Notices, Info Sheets & Other Reference Materials > Import, Export & International Trade. The Public Notices are in numerical order.

Further detailed information regarding exporting goods outside the EU can be found on our website by using the following link:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&propertyType=document&resetCT=true&id=HMCE_PROD1_032667

You may find the Export Best Practice Guide particularly helpful.

To obtain the commodity code for the goods from our Tariff Classification Helpdesk on (+44) 03000 513777 or by e-mail at tariff.classification@hmrc.gsi.gov.uk.

Alternatively, a free online version of volume 2 of the UK Trade Tariff, which contains the Commodity Codes and lists the duty rates, can be viewed at https://www.gov.uk/trade-tariff.

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

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