What is the tariff classification and why is it important?

The tariff classification is the process by which a commodity is identified within a system of classification used in foreign trade, assigning it to the corresponding encryption in accordance with their characteristics.

This classification allows us to identify different provisions relating to the import or export of a product, and thus represents one of the key elements for the planning of an international operation.

What is the tariff classification?

A commodity classification allows us to identify the provisions that may apply to your entry or exit from the country.

Among other elements, it may be relevant to determine:

• Applicable duties.
• Regulations and Non-Tariff Restrictions.
• Standards and requirements.
• Tariff treatment.
• Information needed for different processes of foreign trade.

Therefore, the classification should be determined before performing an operation, and considering the actual characteristics of the product.

How do you classify a commodity?

The classification should not be determined only by the trade name of the product.

To correctly identify a commodity may be necessary data such as:

• Composition.
• Materials.
• Function.
• Use.
• Presentation.
• Technical characteristics.
• Manufacturing process.

With this information, and according to the system and criteria can be determined the correct encoding.

What is a tariff?

In Mexico, a tariff code is part of the system used to identify goods within the rate applicable to foreign trade.

Your determination allows you to link a product with different provisions that may apply to your import or export.

In addition, it should be considered the complementary information that may be required under the existing framework to properly identify the goods within the operations of foreign trade.

Why is it important to correctly classify a commodity?

The classification can affect different aspects of an operation.

Goods classified incorrectly can lead to determine contributions wrong or does not identify the regulations and requirements which really are applicable.

Therefore, the classification should be carried out with sufficient information about the product and before making any decisions based on costs, or conditions of import.

Does the tariff classification influences the taxes?

Yes. The classification is one of the elements used to identify the tariff which may correspond to a commodity.

However, the final determination of the contributions may also depend on other factors such as value, origin, regime, and commercial treatments applicable.

Tariff classification and external trade

Before you define how much will it cost to import a commodity or what requirements you must meet, it is necessary to know exactly what product is being marketed.

For this reason, the tariff classification works as one of the starting points for the structuring of a foreign trade transaction.

In Core Global Logistics , we understand that an efficient logistics starts from the planning and the knowledge of the characteristics of each operation, allowing you to coordinate solutions for the international carriage aligned with the needs of each movement.