Commodity Codes classify goods for import and export so you can fill in declarations and other paperwork, check if there's duty or VAT to pay, and find out about duty reliefs.
The Bailiwick applies the UK Global Tariff to goods imported from anywhere other than the UK, Jersey or Isle of Man.
The tariff payable will be established using the commodity code, the value of the goods and the origin of the goods that are declared on customs declarations.
A 10 digit commodity code will be needed for each different product that is imported when making a customs declaration. If goods are classified correctly importers will also then know what rate of import duty they will be expected to pay. Importers who are not sure how to classify goods should check how to find the right commodity code.
A step-by-step guide for navigating the UK Tariff has also been provided by the Guernsey Border Agency here - GOV.GG - UK Trade Tariff (https://gov.gg/CHttpHandler.ashx?id=133547&p=0)
Importers of goods that originate in the EU may be able to claim a preferential rate of duty when imported into the Bailiwick. This means they'll be free of Customs Duty. To find out how to claim preferential rates of duty on goods covered in the UK's deal with the EU and how to declare goods imported into the UK and Bailiwick of Guernsey on the import declaration please follow this link - GOV.GG - EU Preferential Rates (https://gov.gg/preferentialrates)
To claim preferential rates of duty, your product must originate in the EU or UK (as the exporting country) as set out in Chapter 2 of the Trade and Cooperation Agreement 'rules of origin' and the 'Product Specific Rules of Origin' contained in Annex ORIG-2.
The introductory notes to product specific rules of origin can be found in Annex ORIG-1.
You'll need to know how to classify your goods when checking the product specific rules.
If your goods do not meet the rules of origin requirements (or if you cannot prove that the goods meet them) you'll still need to pay Customs Duty. To find out the rate of duty, you'll need to classify your goods correctly.
Proof of Origin
To benefit from preferential tariffs when importing into the UK from the EU (or importing into the EU from the UK), the importer will be required to declare they hold proof that the goods comply with the rules of origin.
You'll be entitled to claim the preferential rate of duty if you have either:
- a statement on origin that the product is originating made out by the exporter (such as statement on the invoice)
- the importer's knowledge that the product is originating
Statement on Origin
- The text for a statement on origin is in Annex ORIG-4 of the Trade and Cooperation Agreement.
- When exporting from the EU to the UK a statement on origin can be made out by any exporter where the value of the consignment is 6,000 euros (currently £5,700) or less. Above this amount the EU exporter must have a Registered Exporter (REX) number and include it in the statement.
- When exporting to the EU you must include your EORI number in any statement you issue to your EU customer, regardless of the value.
- The statement on origin must be provided on an invoice, or any other commercial document (excluding a bill of lading), describing the originating product in sufficient detail to enable its identification.
- It will be valid for 2 years from the date it was made out on imports into the UK and 12 months for imports into the EU.
- 'Importers knowledge' allows the importer to claim preferential tariff treatment based on evidence they have obtained about the originating status of imported products. This evidence must be in the importer's possession, be in form of supporting documents or records which may be provided by the exporter or producer and provide evidence that the product qualifies as originating.
- As the importer is making a claim using their own knowledge, no statement on origin has to be provided by the exporter or producer.