As you may be aware, from 1st February the “2022 Tariff Nomenclature” has become effective in the GCC, as confirmed by UAE Customs Authorities through Customs Notice 01/2022. The Harmonized System is a standardized numerical method of classifying traded products, used by customs authorities to identify products when assessing duties and taxes and for gathering statistics.
Most product categories are affected by the recent changes to the list, mainly relating to different types of machinery and their parts (Chapters 84 and 85). In addition, new technologies such as smartphones, vapes and drones received specific subheadings in the updated list. This means that if your business involves any of the above, your product database and customs duties applied to your imports must be revised.
The new changes will also affect companies dealing with agricultural, chemical, wood, textile and metal products. However, if your company deal in cross-border transactions of any type of goods then you must be ready to identify possible impacts to your database.
KPMG’s approach
Now is the right time for companies to review and adapt their products’ database in preparation for the changes. This can be combined with a full review of all codes used on imports for compliance and optimization of customs processes.
If you need any help with any of the following, then please reach out and we will endeavor to help your organization mitigate any future issues.
- Correlating HS 2017 to HS 2022
- Updating the product’s description to adapt to HS 2022
- Reviewing product classification for full the database
- Mapping dutiable and exempted products
- Reviewing HS 2017 used in the transition period
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