For more than ten years, the team at Vantis Custom House have assisted our clients to recover over £35 million of import customs duty. Due to the ever changing and fast evolving product ranges, the electronics sector has provided us with many areas for reclassification.
From speaking to Far Eastern manufacturers and exporters at the Consumer Electronics Fair in Berlin, we believe that a number of importers into the EU are paying higher rates of customs duties than are necessary on certain products that lend themselves to reclassification. There are currently opportunities to reduce the customs duties on many products and we have summarised ten different products below to illustrate the diversity in the range.
- MP3 players - There are a number of these products on the market that are capable of both audio and video applications. The original product was only for audio applications. Any importer of the 'new' range, as well as 'portable multi-media players', may want to review classification to ensure that the correct level of duty is being paid.
- Digital Cameras - The digital technology in cameras has evolved a great deal and there are a range of products available. The European Commission has recently changed legislation that has resulted in a number of products being reclassified under a zero-duty heading.
- Digital Photo-Frames - There is a current distinction being made between those products that use JPEG only and those which use a combination of JPEG & MPEG. HM Revenue & Customs is changing the criteria for duty rates relating to digital photo-frames, which is expected to be announced in the next two months.
- CCTV systems - These are available in a number of combinations with cameras, digital video recorders and LCD monitors.
- LCD Monitors - There are many different types of monitors on the market capable of receiving a variety of input signals. Certain monitors, immaterial of their end use, can be imported free of duty into the EU.
- Car Entertainment systems - These are usually a combination of radio, DVD player and LCD screen. In some cases they also include GPS and attachments for cameras etc.
- Digital Multi-meters - An electronic measuring device that combines a number of functions in one unit.
- Rear-view systems - These are for vehicles and can be presented as a combination of a camera and LCD monitor.
- DAB radios - There are a number of variations of these products available in the market i.e. with ipod docking stations, alarms etc. Each of these products has a different level of customs duty, although the same level of duty may be applied accidentally.
- Bluetooth headsets - Popular product on the market due to the Road Safety Act 2006, which made the use of mobile phones by drivers a criminal offence in the UK.
The classification of these ever changing products is constantly under discussion in the EU and there is current legislation or legislation in the pipeline that may affect your business.
Should you wish to investigate the potential of reclassification for your current and future importing activities, or for further information on the products highlighted above, please contact the Vantis Custom House team.
For more information on Vantis' Technology & Telecoms Group, please contact Nick Winters, or complete the online enquiry form below.