KNOW YOUR CUSTOMS BE INFORMED HM Customs Cayman

KNOW YOUR CUSTOMS BE INFORMED HM Customs – Cayman Islands

HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM World Customs Organization

GOOD AFTERNOON TO ALL! n n n 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 (WEBBASE). NEW SERVICES SUCH AS ONLINE DATA (ENTRY) SUBMISSIONS AND PROCESSING. CUSTOMERS WILL BE ABLE TO SUBMIT THEIR DECLARATIONS ELECTRONICALLY. 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!

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

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

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

TARIFF CODES: CURRENT vs HS Section VII PLASTICS AND ARTICLES THEREOF; RUBBER AND ARTICLES THEREOF Chapter 40 Rubber and articles thereof New pneumatic tires, of rubber: Of a kind used on motor cars (including station wagons and racing cars): n Orig. tariff code - 40. 11 Current rate of duty - 22% New HS tariff code 4011. 10. 00

TARIFF CODES: CURRENT vs HS Of a kind used on buses or trucks: Orig. tariff code - 40. 11 Current rate of duty - 22% New HS tariff code n 4011. 20. 00 Other, having a "herring-bone" or similar tread : Of a kind used on agricultural or forestry vehicles and machines Orig. tariff code - 40. 11 Current rate of duty - 22% New HS tariff code n 4011. 91. 00 Of a kind used on construction or industrial handling vehicles and machines. Orig. tariff code - 40. 11 Current rate of duty - 22% New HS tariff code 4011. 92. 00

TARIFF CODES: CURRENT vs HS Orig. tariff code 02. 11 (Poultry, fresh, chilled or frozen, but not cooked or further prepared)- Current rate of duty - 0% New HS tariff codes Meat of Chicken Meat of Turkey Meat of Ducks, geese or guinea fowls 0207. 10. 00 0207. 20. 00 thru 0207. 30. 00 Orig. tariff code 08. 01 (Fruit, fresh or frozen, but not further prepared)- Current rate of duty - 17% New HS tariff codes Coconuts Bananas and Plantains (Fresh) Avocados (Fresh) Oranges (Fresh) Watermelons 0801. 10. 00 0803. 00. 10 0804. 40. 20 0805. 10. 20 0807. 11. 00 thru 0814. 00

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

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

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