Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Chapter 9 Export customs practice

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Topics covered in this chapter Introduction/E Commerce Value Added Tax Customs tariff and classification Export controls Export documentation and procedures Customs reliefs

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Duty preference and origin Common Agricultural Policy New Community/Computerized transit System Single Administrative Document

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Introduction/E commerce Customs is an integral part of international trade and regulations are driven by national governments, customs, union and international agencies. They are subject to continuous review and change and vary by country. Many countries operate a computerised electronic declaration customs network. Exporters are advised to devise a customs strategy on an individual basis. Endeavour to understand the salient features in each customs element examined in this chapter.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Value Added Tax Many countries call it a sales tax. This chapter examines the EU system. Customs tariff and classification Understand the six general rules governing the interpretation of the nomenclatures procedure and note the customs classification determines the duty and VAT level. Export controls A range of export controls exist and their application and procedure will vary by country.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Export documentation and procedures Documentation is a key element in processing the cargo through customs. A range of documents are examined in chapter 14 and the processing in chapter 15. In many countries customs documentation are handled by agents. Note the range of areas examined on the basis of their suitability. For UK exporters obtain/study the relevant HM customs notices.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Customs reliefs Ensure you understand the range of customs relief available which are designed to encourage trade development. Note the role of carnets and free trade zones. Duty preference and origin Understand the role of duty preference and origin, and keep up to date on new tariff preferential agreements on a country basis. Common Agricultural Policy A feature of the EU.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch New Community/Computerized Transit System Understand the constituents of the system which is European based. Single Administrative Document Note the role of this eight part document.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Key concepts Ensure you understand the following: Introduction/E commerce – the basic concept of customs. Value Added Tax and its application. Customs tariff and classification and basis of application. Export controls and the range available. Export documentation and procedures – particularly the computerised application.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Customs reliefs and individual benefits by category. Duty reference and origin and on going development. Common Agricultural Policy and outcome of any review in the future. New Community/Computerized Transit System and the basis of its application and constituents. Single Administrative Document role.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Conclusion Customs is a complex area and a comprehension of the basic regulation/preference may yield significant benefits to the trader. See customs planning – 601