THE IMPORTANCE OF PHYSICAL AND CHEMICAL ANALYZES IN DETERMINING THE CUSTOMS TARIFF

The Customs Tariff and Statistical Position (GTIP), which is one of the most important elements of foreign trade operations, is specific to each item and is used to define and distinguish products in international trade.

The Harmonized Commodity Description and Coding System (HS Code), the product coding system consisting of 6 digits, which is used in more than 170 countries affiliated to the World Customs Organization, is called the harmonized system and is used in the same way all over the world.   It is not allowed to make any changes to the HS code by countries. The first 8 digits, along with the next 2 digits, are common to countries in the same region (for example, all European Union member states and Turkey). The next 2 digits indicate which country it belongs to, while the last two digits used as the country's full statistical code of the product is determined with the last two digits so that the 12-digit GTIP is reached.

     Customs Tariff Statistical Position is used for;

  • Determining the customs duties of the goods and other taxes and financial burdens charged in foreign trade,
  • Keeping international trade statistics,
  • Determining the rules of origin,
  • Determination and collection of local taxes,
  • In trade negotiations (at meetings of the World Trade Organization),
  • Foreign trade control, monitoring of products subject to permits, supervision, standards.

One of the main data that should be determined in cost studies before the import process is the tax rates that will be applied to the product to be imported. At the customs clearance stage, it is possible to determine the taxes that will be applied to the goods and other requirements required during import, permits only by determining the customs tariff statistical position (GTIP) of the goods. Especially considering that almost one out of every three products is subject to product safety inspection with the decisions taken in the context of product safety in our country recently, additional customs duties are applied on nearly 5000 products, surveillance practices are also actively used in the foreign trade regime and thus it becomes extremely important to determine the origin and GTIP number of the product in foreign trade operations. Previously, the definition and documentation such as commercial invoices of goods determined by HS, and increased product variety in the face of Recent Technological Developments, detailed analyses of the products are made and code is determined by the structure determination of goods.  In order to determine the GTIP specific to each item, whether it is a raw material, semi-finished product or finished product; First of all, it is necessary to accurately determine what the nature of the item is.  It should be remembered that the better the type of product is determined, the healthier the GTIP will be, and the risk of encountering problems in customs is minimized. Therefore, in order to correctly identify many items today, it may be necessary to perform a number of physical and chemical analyzes, which is also possible only with chemical laboratories. As such, chemical laboratories have become inevitable in the sector.

 The Unsped Customs Brokerage (UGM) has opened a laboratory for chemistry tests with an investment of 100 thousand euros, making it the first in the sector.

Celebrating its 40th anniversary this year, with the laboratory established UGM aims to provide an opportunity to make an accurate and healthy assessment of the conditions of goods subject to foreign trade in terms of prohibition/restriction measures, tariff, value, regime, origin, taxation, preliminary permits, and standards by conducting all kinds of required analysis. Thus, waiting costs and errors are minimized, competitiveness of foreign trade companies and Turkey increased, as well as important contribution is made for the convenience and effectiveness of inspections conducted by public authorities in terms of protecting human and environmental health.

UGM, which is among the leading organizations with 40 years of experience, 1400 employees and 57 service points in the sector ranks first with 9 percent of the total number of declarations produced in Turkey. In addition, the company, which provides services at home and abroad with an integrated service approach, performs 10 percent of Turkey's foreign trade operations. Company delivers services in the field of foreign trade and custom operations with 75 Customs broker companies (60% of them is partner), 236 Assistant Consultants, 6 chemists,  3 food engineers, 30 professional staff all of whom are specialist and professional in their fields under the company umbrella.