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Customs Classification of Goods
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what is customs classification?
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Customs classification is an international method used by Customs Division within the
Seychelles Revenue Commission (SRC) to classify goods or commodities being traded in by
various businesses and individuals.
It is based on the World Customs Organisation (WCO) Harmonised Commodity Description and Coding
System or HS.
Goods are classified using an eight digit code or HS code at national level that determines the rate
of tax applicable to the item being imported.
The HS codes are available in the Harmonised Tariff Nomenclature published by the Ministry of Finance.
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Why is classification of goods important?
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All imported goods must be properly classified to enable the Customs Division within SRC to
identify goods imported into the country for proper revenue collection.
Classification of goods is vitally important as well for gathering statistical information for
economic planning. It also facilitates trade negotiation and helps in the enforcement of national and international laws.
Classifications of goods ensure that the goods are properly grouped under the appropriate category
such as ensuring that goods are not listed under the prohibited items. Classification of goods also
speed the release of goods.
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What is Harmonised System?
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The harmonised system (HS) is an international standardised system for classifying trade
products and it is a unique way of identifying and coding merchandise.
The structure of the harmonized system is universal, for the purpose of description and classification
of goods. It was created by WCO in 1988, soon after it was adopted by many countries.
The Harmonised System is based on a six-digit code at international level and countries using the HS
can extend the number of digits to suit their national requirements. Seychelles has opted to use an
eight-digit code. This permit the country to add what is known as “national split” to facilitate
the classification of specific items particularly those of an economic importance. Furthermore,
it also facilitates Customs to create and assign rates of duty in any required categories for all
classification.
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Why is Seychelles Customs Migrating to HS 2007?
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Seychelles Customs is currently using version 2002 of the HS for the classification of goods
and will soon be migrating to version 2007.
Since migrating to the 2002 version, there has been considerable improvement in technology and this
has resulted in a number of new products appearing on the market and a number of obsolete ones being
phased out.
Every five years WCO comes up with an updated version of the tariff taking into consideration the
changes in technology and pattern of trade.
In order to facilitate the correct classification of goods particularly new product appearing on the
local market, SRC has decided to consider migrating to version 2007 of the HS.
This exercise will also put us in line with other countries in the region that are currently
using HS2007.
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What is the obligation of traders towards classification of goods?
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It is the responsibility of the declarants to be knowledgeable in the classification of goods.
Using the wrong HS code may result in revenue loss and this may lead to the declarants being
penalised. It is therefore important for the declarants to verify carefully their Bills of
Entry or declarations to ensure that they have used the correct HS code to classify their
goods before submitting their Bills of Entry or declarations to Customs for processing and
clearance of goods.
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Where do I go for more information?
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If you need further information or clarification on classification of goods, please visit
any Customs offices at seaport and at the airport or contact us at this address:
Seychelles Revenue Commission
PO Box 50
Onion Mall
Victoria
Tel: 293737
Email: commissioner@ src.gov.sc.
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