Belize Customs Broker Exam 2024 PDF

Structure of the Tariff Customs Broker Examination OBJECTIVES At the end of the session each participants should be able to:  To explain the role of the relevant authorities for the composition of the national tariff.  To explain the importance of applying a uniform nomenclature.  To descri...

Structure of the Tariff Customs Broker Examination OBJECTIVES At the end of the session each participants should be able to:  To explain the role of the relevant authorities for the composition of the national tariff.  To explain the importance of applying a uniform nomenclature.  To describe the structure of the Harmonized System Nomenclature and explain its role in Trade.  To explain the importance of the legal notes – chapter notes and section notes  To distinguish between the rates applied by each free trade agreement partners. CUSTOMS TARIFF AND TRADE CLASSIFICATION – FIRST SCHEDULE  Customs and Excise Duties Act  Chapter 48 Section 3 (1)  Subject to any exemption or rebates provided by or under the authority of this Act, there shall be raised, levied collected and paid for the use of the Government, the customs duties, in respect of goods imported into Belize, or taken out of bond for consumption in Belize, at the rates set out in the First Schedule.  VERSION OF THE HS AND CET 2007 2012 2017 2022 version of the HS version of the HS version of the HS version of the HS and CET and CET and CET and - implemented in - implemented in - implemented in - implemented in 2009 2013 2018 2022 2009 2013 2018 2022  AUTHORIZING PARTIES FOR THE NATIONAL TARIFF World Customs Organization Council for Trade and Economic (WCO) – Harmonized System Development (COTED) Responsible for the nomenclature and Responsible for the schedule of rates, list of legal notes conditional duty exemptions.  HARMONIZED SYSTEM The Harmonized System Committee Must adhered to the schedules set by WCO to prepare amendments to the HS every 5-6 years and also to the explanatory notes. Is the only body responsible for the amendment to any part or text of the nomenclature HARMONIZED SYSTEM HS Nomenclature As established by the Harmonized System Committee under the auspices of the World Customs Organization.  Terms of the heading and subheadings  Chapter notes  Section notes  Explanatory notes The Schedule of rates As set out by the CET under the auspices of the Council for Trade and Economic Development  Set Tariff rate  Rates established under list A, C, D HARMONIZED SYSTEM  The Harmonized Commodity Description and Coding System generally referred to as the Harmonized system or simply HS  Nomenclature: set or system of names or terms use in a particular field or science, by individual or community etc.  Came into effect in 1988  Governed by "The International Convention on the Harmonized Commodity Description and Coding System".  Developed and maintained by the World Customs Organization (WCO)  an independent intergovernmental organization based in Brussels, Belgium,  Used by 186 members and 212 countries and economies as a basis for their Customs tariff and for the collection of international trade statistic.  The HS is accompanied by the general rules of interpretation and explanatory notes.  comprises about 5,000 commodity groups,  each identify by a six code digit (legally and logically structured ) and is supported by well-defined rules to achieve uniform classification.  Assigns up to a total of 6 digits at the tariff-rate (legal) level. Two extra digits may also be assigned at the regional level and the last two digits at the national level (by a country) for a total of 10 digits to be listed on entries. Structure of the Tariff Organized into 21 Sections: I to XXI (numbered in Roman Numerals) 99 chapters at the 2 digit level (numbered using Arabic numerals): Chapter 1-76, 78-97 Chapter 77 reserved for future use in the HS (international use only) 98 & 99 reserved for special uses by contracting parties (national use) Chapter 98 comprises special classification provisions, and is presently being use only for personal and household effects. National Tariff List of abbreviation and symbols Weight, size, and volume measurement; abbreviation for rate of duty column List of Titles of Section and Chapter First, the system assigns goods to sections, and then proceeds to assign these goods to their specific chapter heading and subheading, in that order, as necessary. Goods are arranged in order of their degree of manufacture (stage of processing): Raw –> unworked –> semi-finished –> finished Materials –> products –> products –> products 08.10 09.01 21.01 Cow and its product Chapter 2 - Chapter 16 – Chapter 1 – Live meat of bovine preparation of animals - animal - section meat - section section I I IV Chapter 64 – Chapter 41 – leather animal hide and footwear - skin - section VIII section XII The Harmonized System Nomenclature can be broken down in the following categories: State of goods Processed goods Material makeup goods Function of goods GOODS IN SPECIFIC STATE – CRUDE, RAW Chapter 1 – Live Animals; Meat Chapter 2 – Meat and edible meat offal Chapter 3 – Fish and crustaceans…… Chapter 4 – Dairy Produce…… Chapter 6 – Live trees and other plants…. Chapter 7 – Edible vegetables Chapter 8 – Edible fruits and nuts….. Chapter 9 – Coffee, tea, mate and spices Chapter 25, 28, 29 Processed Goods  Chapter 16, 17, 18, 19, 20, 21, 22, 23,  Chapter 30  Chapter 68, 69 MATERIAL MAKEUP  Chapter 39  Chapter 40  Chapter 48  Chapter 68  Chapter 70  Chapter 72, 73, 74, 75, 76, 78, 79  Chapter 80, 81,83, GOODS BY FUNCTION  Chapter 32 –  Chapter 34 –  Chapter 42 –  Chapter 84, 85,87, 88, 89,  Chapter 90, 94,95,96  GENERAL IINTERPRETIVE RULE (GIR) General Rules for the interpretation of the General Rules Explanation Harmonized System Provides the principles on which classification is based on and is an integral part of the classification structure for the schedule of rates. Takes into consideration the instruction provided in the chapter and second notes and the explanatory notes. SIX GIRs GIR 1 Establishes the legal basis for classification (terms, notes and other GIRs) and establishes the priority given to the terms of headings and notes over the remaining GIRs. GIR 2 Extension of the scope of the headings to cover mixtures, composites, unassembled, unfinish or incomplete goods. GIR 3 Resolution of classification when two or more headings are possible. SIX GIRs GIR 4 Provides for completely unforeseen goods that are not otherwise covered. GIR 5 Covers the treatment of packaging material and containers GIR 6 Provides that the same process is independently followed at each subheading level.  NOMENCLATURE Section Notes Chapter notes Additional Chapters Headings CARICOM notes Gives a general Sets out the scope of the Very general items, titles Refers to a specific description of what is heading, contain inclusion for ease of reference only, grouping of goods, found in the various and exclusion. not legally binding general description of headings and set the goods. scope and definition of certain products within the headings.  Subheadings Other Legal Notes A breakdown of headings, Provides for the classification Refers to the Chapter notes, very specific descriptions of of goods not specifically section notes, and sub- goods or groups of identified by subheadings of section notes. These are commodities except where a heading, a wide range of legally binding. the word “other” is used, goods legally binding IMPORTANCE OF THE LEGAL NOTES TO SECTIONS AND CHAPTERS LEGAL NOTES – LIVE ANIMAL  CHAPTER 01.01 – LIVE HORSES, ASSES, MULES AND HINNIES  - Horses:  -- Pure-bred breeding animals  -- other  --- race horses, not for breeding  --- other SECTION NOTES  This section covers, with certain exceptions, all live animals and products of animal origin which have not undergone any transformation or having undergone a limited transformation. This section includes chapters 1,2,3,4,5.  Key words  Fresh, chilled, frozen, brined, salted  Note 1 – any reference to the genus or species is a reference to its young unless otherwise stated.  Note: Not all living animals are classified in this section and products having undergone a transformation or an additional working are classified in later section. CHAPTER NOTES  The present chapter covers all live animals. All of the heading, with the exception of 01.05 cover both wild and domestic animals (live poultry).  Exclusions to this chapter  Fish and crustaceans, molluscs and other aquatic invertebrates  Cultures of micro-organism and other products of heading 30.02  Animals of heading 95.08 – animals forming part of the circus, menageries or other similar travelling animal show, falls in this heading (note 1 c to chapter 1) LEGAL NOTES - LIVE ANIMALS  This system consist of a six-digit numbering system  Established by the WCO  The first 4 digits reflects the tariff heading and is universally used by all countries signed on to WCO e.g. 01.01 – 01 reflects the chapter and 01 reflects the heading which grouped live horses, asses, mules, and hinnies  The 5th and 6th digit is the subheading being divisions of the headings e.g..21 represents the subheading for live horses, asses, mules, and hinnies.  The subheading are denoted by dashes – one dash being the primary divisions of a heading and the two dash being the division of the one-dash is the subheading  The 7th and 8th digit e.g. 10 is a universal code established regionally for CARICOM members  The 9th and 10th digit are used nationally by the Government of Belize (available to zero rate certain basic food items and essential goods. SCHEDULE OF RATES First Scheduled – Tariff Rates Council for Trade and Economic Development (COTED) Is the regulatory body within CARICOM that is responsible for setting the Import duty rates. Prepare rates using a common external tariff (CET). Rates can be specific or ad valorem  The National Tariff of Belize has been prepared to implement the Common External Tariff (CET)of the Caribbean Community (CARICOM) Established by decision of the Council for Trade and Economic Development (COTED) of the Treaty of Charaguamas Article 82 COMMON Based on the Harmonized Commodity EXTERNAL Description and Coding System (Current Edition). TARIFF (CET) comprehensive and systematically organized according to easily understood principles. Schedules of Rates Is based on the current edition of the harmonized system. There are set rates which must be used by all member states. List A, C and D List A – provides a list of items on which the suspension of duty under Article 83 of the Revised Treaty has been granted to member state for an indefinite period, subject to review by COTED List C – is a list of items of which minimum rates of duty has been agreed by COTED, with the actual duty rate to be applied by individual member states. List D – additional items in which the CET is suspended under Article 83 of the Revised Treaty which has been granted to St. Kitts and Nevis, other OEC’s member state and Belize with the actual rate to be applied by those member state.  List A – meat fresh or chilled – 02.01, 02.02 – 40%  List C race horse – 0101.29.10 – 45% fuel, motor vehicles, precious metals Motor vehicle  List D stoves, refrigerators etc.  Government may impose tariffs to increase revenue, include zero rated items or to protect domestic industries from foreign competition  government uses the ninth and tenth digit of the HS code for:  zero rate basic need items (food items),  Zero rate machinery and equipment for local industries,  tools use in education etc  e.g. 0401 – milk, 1511- vegetable oil and also to separate an item from a group that attracts a different rate for GST or zero rated for Etc.  To increase duty rates to protect domestic production. TYPES OF TARIFF  Specific Tariff  Is applied to items weight or volume  2204 - liquor pays duty on the volume (imperial gallon)  2402/03 – cigarettes and tobacco pays duty by pound  0701 – onion pays duty by hundred pounds  Ad Valorem  Is a duty rate applied to the cost of an item e.g. 0%, 5%, 10%, 15% FREE TRADE AGREEMENTS  MFN  Most Favoured Nations  CARICOM  Is a customs union (15 member states and 5 associate members)  Antigua & Barbuda, Bahamas, Grenada, Dominica, Guyana, Barbados, Haiti, Jamaica, Monserrat, St. Kitts and Nevis, Saint Lucia, St. Vincent, Suriname and T&T  EPA  Economic Partnership Agreement – EPA/UK Cariforum, EPA/EU Cariforum  GUATEMALA  Guatemala Partial Scope Agreement  Republic of China (TAIWAN)/Belize Bilateral Agreement  Sets out the goods which when imported for the purpose stated in the list may be admitted into the importing Member State free of Import Duty or at a rate lower than set down (subjected to approval of the relevant Competent Authority). LIST OF CONDITIONAL DUTY These goods can be imported by persons, enterprises or organization in the circumstances or EXEMPTIONS for the purpose specified in the list. LIST OF ITEMS INELIGLE FOR DUTY EXEMPTIONS  Set down those items which will not be eligible for the grant of exemption from duty, where they are imported for use in the Industry, Agriculture, Fisheries, Forestry and Mining.  These items on this list are items that are produced in the Caribbean Community in quantities which are considered adequate to justify the application of tariff protection  List I – cannot grant exemption if items are imported for use in agriculture, fisheries, forestry and mining.  List II – cannot grant exemption if items are imported for any other approved purposes. CONVERSION TABLE Use for specific duties application.