Ref.: Tariff classification
To import or export goods, member countries of the World Customs Organization (WCO) use an international instrument called the Harmonized Commodity Description and Coding System (HS). This instrument allows for the uniform identification of the numerical code and description (classification) at the six-digit level (subheading) applicable to any merchandise subject to international trade.
The objective of the HS is to facilitate the exchange of trade and information among the countries that use it by harmonizing the description, classification, and coding of goods subject to international trade. The following questions arise: Do countries apply the HS in a harmonized manner? Is the objective of harmonization promoted by the HS being lost? And is it inconsistent to call the instrument the HS, given the frequent differences between countries when classifying certain goods?
To answer this question, it must be acknowledged that, currently, it is not difficult to identify specific cases of goods for which the customs authorities of different countries have issued divergent classification criteria. Examples include: medicines for human or veterinary use, food supplements, cosmetic preparations, liquid crystal displays, paints, alcoholic beverages, transportation vehicles, high-tech equipment, among others. This is a reality in Costa Rica and in all countries around the world, one that we cannot ignore, but that we must confront. Rather than worrying, we must address it and approach it based on the specific case at hand.
A reasonable way to do this is within the hands of Costa Rica's customs authorities. Customs policy actions should be implemented aimed at processing and issuing advance rulings on tariff classification, ideally through digital platforms. This would help generate greater legal certainty in this area. However, if in a specific case there is a discrepancy between a tariff classification criterion issued by the customs authorities of a foreign country and a criterion issued by our customs authorities, the International Convention on the Harmonized System establishes that "any dispute not resolved through good offices may be submitted by the disagreeing Parties (Governments) to the Harmonized System Committee of the World Customs Organization (WCO), which shall examine it and make appropriate recommendations for resolution."
If you have any questions or require advice on this or other topics, please contact us. costarica@catradeconsulting.com
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