HM Customs – Cayman Islands KNOW YOUR CUSTOMS BE INFORMED

World Customs Organization HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM

GOOD AFTERNOON TO ALL! JUST A QUICK INTRODUCTION ON THE CUSTOMS DEPARTMENT’S PLANS ON INTRODUCING A NEW IT SYSTEM: TOTAL REVENUE INTERGRATED PROCESSING SYSTEM (TRIPS) JULY 2012 CUSTOMS WILL BE GOING LIVE WITH THIS NEW CARGO PROCESSING SYSTEM (WEB- BASE). JULY 2012 CUSTOMS WILL BE GOING LIVE WITH THIS NEW CARGO PROCESSING SYSTEM (WEB- BASE). NEW SERVICES SUCH AS ONLINE DATA (ENTRY) SUBMISSIONS AND PROCESSING. NEW SERVICES SUCH AS ONLINE DATA (ENTRY) SUBMISSIONS AND PROCESSING. CUSTOMERS WILL BE ABLE TO SUBMIT THEIR DECLARATIONS ELECTRONICALLY. CUSTOMERS WILL BE ABLE TO SUBMIT THEIR DECLARATIONS ELECTRONICALLY. ALSO THE ABILITY TO RE-USE YOUR ELECTRONICALLY STORED ENTRY DATA. ALSO THE ABILITY TO RE-USE YOUR ELECTRONICALLY STORED ENTRY DATA. OUR NEW HARMONIZED TARIFF WILL BE A BIG PART OF TRIPS. THEREFORE, LET ME TAKE A FEW MINUTES TO HIGH LIGHT THE HS TARIFF! OUR NEW HARMONIZED TARIFF WILL BE A BIG PART OF TRIPS. THEREFORE, LET ME TAKE A FEW MINUTES TO HIGH LIGHT THE HS TARIFF!

What is the Harmonized System (HS)? The Harmonized Commodity description and coding system is an international six-digit commodity classification. Developed by the WCO – formally the Customs Co-operation Council, established in 1952 (CCC)

Background Currently, Cayman uses a hybrid version of the HS at the four-digit level. At this level, a variety of products are collapsed into general headings and are not comparable with other international classifications. The Cayman Islands saw the needed to keep abreast with its trading partners by modernizing the current system, taking into consideration the increase in the volume of international trade, new technology and the rapid change in the world economies.

Objectives To improve on; To improve on; the standardization and harmonization in product classification the standardization and harmonization in product classification the production of more detailed trade statistics the production of more detailed trade statistics the processing of customs entries the processing of customs entries It is not to raise customs duties

BENEFITS of the HS to the CI Government To keep abreast of today’s technology (one world) To keep abreast of today’s technology (one world) Conformation of rules in the International Trade (global) Conformation of rules in the International Trade (global) Harmonized Classification of goods with world trade (WTO). Promote consistency and comparability of information Harmonized Classification of goods with world trade (WTO). Promote consistency and comparability of information More accurate trade statistics for Government Re: imports/exports (Economic) More accurate trade statistics for Government Re: imports/exports (Economic) Better economic Policies (subsidies, concessions) Better economic Policies (subsidies, concessions) Environment and social concerns (recycling etc. & chemical products) Environment and social concerns (recycling etc. & chemical products) Monitoring and Enforcement (Data reports) Monitoring and Enforcement (Data reports)

BENEFITS of HS to TRADERS/BROKERS More Efficient & Speedy processing of cargo More Efficient & Speedy processing of cargo Proper Classification of Products (save money) Proper Classification of Products (save money) Harmonized Commodity Inventory (inventory control) Harmonized Commodity Inventory (inventory control) Industry Market share statistics Industry Market share statistics Identification of emerging markets Identification of emerging markets

TARIFF CODES: CURRENT vs HS Section VII Section VII PLASTICS AND ARTICLES THEREOF; RUBBER AND ARTICLES THEREOF Chapter 40 Rubber and articles thereof Rubber and articles thereof New pneumatic tires, of rubber: New pneumatic tires, of rubber: Of a kind used on motor cars (including station wagons and racing cars): racing cars): Orig. tariff code Current rate of duty - 22% New HS tariff code

TARIFF CODES: CURRENT vs HS Of a kind used on buses or trucks: Orig. tariff code Current rate of duty - 22% Orig. tariff code Current rate of duty - 22% New HS tariff code Other, having a "herring-bone" or similar tread : Other, having a "herring-bone" or similar tread : Of a kind used on agricultural or forestry vehicles and machines Orig. tariff code Current rate of duty - 22% New HS tariff code Of a kind used on construction or industrial handling vehicles and machines. Of a kind used on construction or industrial handling vehicles and machines. Orig. tariff code Current rate of duty - 22% New HS tariff code

TARIFF CODES: CURRENT vs HS Orig. tariff code (Poultry, fresh, chilled or frozen, but not cooked or further prepared)- Current rate of duty - 0% New HS tariff codes thru Meat of Chicken Meat of Turkey Meat of Ducks, geese or guinea fowls Orig. tariff code (Fruit, fresh or frozen, but not further prepared)- Current rate of duty - 17% prepared)- Current rate of duty - 17% New HS tariff codes thru Coconuts Bananas and Plantains (Fresh) Avocados (Fresh) Oranges (Fresh) Watermelons

Publications that complement HS Code Explanatory notes Explanatory notes Alphabetical index Alphabetical index Compendium of classification opinions Compendium of classification opinions

Statistical data sets available to the public and private sectors Statistical data sets available to the public and private sectors Trade by Standard International Trade Classification (SITC) Trade by Standard International Trade Classification (SITC) Imports by End Use Imports by End Use Trade by Country of Origin Trade by Country of Origin Quarterly Trade Bulletins Quarterly Trade Bulletins Annual Trade Report Annual Trade Report

THANKS FOR YOUR TIME THE PANEL WILL NOW TAKE ANY QUESTIONS THAT YOU MAY HAVE!