Customs classification of goods |10 June 2011

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.

Why is classification of goods important?

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.

What is Harmonised System?
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.

Why is Seychelles Customs Migrating to HS 2007?
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.

What is the obligation of traders towards classification of goods?
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.

Where do I go for more information?
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, Orion Mall, Victoria, tel 293737, email: commissioner@ src.gov.sc.

Submitted by the Seychelles Revenue Commission