Customs Tariff

Relevant Acquis Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code REGULATION (EC) No 450/2008 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2008 laying down the Community Customs Code (Modernised Customs Code) Council Regulation (EU) No 7/2010 of 22 December 2009 opening and providing for the management of autonomous tariff quotas of the Union for certain agricultural and industrial products and repealing Regulation (EC) No 2505/96

Customs Act No 88/2005 The WTO agreement in 1995 Trade agreement – EEA Basic and prosessed agricultural products Art. 19 and Protocol 3. FTA´s - through EFTA – over 20 agreements Other agreements – Faroe Island, Norway Icelandic Legislation and Agreements Tariff, Suspensions and Quotas

Customs Tariff Most elements in the Icelandic and EU Tariff system are, in principle, the same. The Harmonized Tariff Schedule of Iceland The Icelandic Customs Tariff is an integral part of the Customs Act No 88/2005 with later amendments. The Customs Tariff is listed in Annex I to this Act and is based on the Harmonized Commodity Description and Coding System (HS), since 1988.

Customs Tariff - Structure IS Customs Tariff is divided into – 21 sections, – 97 chapters as in the Harmonized System. Headings 1.221, Subheadings – thereof Icelandic subdivisions Structure identical to HS – Icelandic divisions, digits 7 and 8.

Icelandic Division of Subheading The tariff headings of the Icelandic Customs Tariff and that of the EU are identical in respect of the first 6 digits of each tariff code number A comparison of the tariff lines (8 digits code number) in the two Customs Tariffs, however, shows a totally different structure in the split up from tariff subheadings (6 digits) to tariff lines Tomatoes prepared or preserved otherwise than by vinegar or acetic acid: Tomatoes, whole or in pieces Other: Purée Other Icelandic division of a subheading

Icelandic Subdivisions The main purpose of Icelandic divisions of subheadings – collection of excise tax, suspensions, import permits or prohibitions etc. – collecting statistical data for the Statistics Iceland which is the centre for official statistics in Iceland.

I For Ensuring a Correct Classification Point of Controversy Based on – Manual screening of customs documents – Physical examination of goods – Risk management, customs authorities can add relevant parameters to the system for automatic procession of customs declarations written and electronic import declarations – Customs auditing is performed after custom clearance

Rulings Classification Rulings of Director of Customs – Within 30 days of complaint – Published – Can be appealed to the State Customs Board – Published web page of the Directorate of Customs Statistics 25 (7/18 ) in (2/16) in (2/30) in 2008

Binding Tariffs Article 21 of the Customs Act No 88/2005 Most common subjects Food or food related products Application form Anyone can apply – Not limited to traders Shall be issued within 30 days of application Binding for the enquirer and customs authorities

Binding Tariffs No expiry date Not published - no public access Stored in an internal database and intra net Decision Can be revoked by the Directorate of Customs Can be appealed to the State Customs Board

Statistics 83 in in in 2008

A Web Based Database Accessible to the Public The public has access to a Web Customs Tariff contained in a data bank, rulings. In the Customs Tariff it is possible to search for tariff headings or text and display immediately information on duties and charges as well as information on permits, prohibitions and other particulars connected with a tariff heading. This data bank is similar to the EUs Taric.

Simple Example of Tariff Number – Import Duties 14 Validity GATT-bindingNo Requisition Percentage binding (%)0 Vehicle registrationNoQuantity binding0,00 Kr/kg Percenatge rate PP (paper) ratio 0,00% PL (plastic) ratio 0,00% Quantity requirementPP*,PL* Terms of tariffnumber TariffA % A 1 kr/kgE % A Conventional duty acc. to customs tariff (A og A1)55%0% TaxesRate Ö3 Value added tax (VAT)7,00 % BV Processing fee regarding paper - 15,00kr/kg.15,00 Kr BX Processing fee regarding plastic - 12,00kr/kg.12,00 Kr License requirements HFO Health certificate regarding feeding stuff and inoculated products. - Remarks TKRIT Tariff code with two months accounting period for debit.

Arguments and References – Case Studies Domestic: rulings – case studies. Foreign publications – The European Commission´s database : TARIC Consultation – BTI Binding Tariff Information EU database – Nordic co-operation – The U.S. Customs and Border Protection database : Customs Rulings Online Search System (CROSS)

Modernized Customs Code It is clear that measurements will have to be taken to implement the modernised customs code that includes digits. Technical issues, human resources and budget are a challenge.

Quotas and Suspensions Exeptions from the normal customs tariff during a given period of validity for: – An unlimited quantity (suspensions) – A limitied quantity (quota)

Quotas and Suspensions Legal framework Customs Act No 88/2005 – Article – Annex IIIA and IIIB, WTO – Annex IVA and IVB The WTO agreement in 1995 Trade agreement – EEA – Basic and prosessed agricultural products – Art. 19 and Protocol 3. FTA´s - through EFTA – over 20 agreements Other agreements – Faroe Island, Norway

Quotas – Management Notifications - Regulations – issued annually – WTO January and December – EU December Ministry of Fisheries and Agriculture No FCFS rule, not license based Quotas are advertised via Internet If applications exceed the available quota – closed auction, only for applicants. – Insurance, condition for valid offers, highest bidder. Letter/certificate – Holder of quota certificate Role of the Directorate of Customs – Registration – manual after each consignment – Importer - notification on import declaration

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