Importers are urged to declare the tariff of machinery parts correctly to speed up customs clearance of goods

Taipei Customs stated that businesses reporting the import of machine parts that are listed in the exclusive tariff, such as "plugs, stopcocks, valves, etc." in Section 8481, "ball or roller bearings" in Section 8482, "gears, cranks, bearing shells, plain bearings, gear boxes and gear devices" in Section 8483, and "sealing gaskets and similar joint gaskets" in Section 8484, should pay attention to the classification principles of machine parts stipulated in Note 2 (A) of Class 16 of the Customs Import Tariff and correctly declare the tariff to avoid affecting customs clearance and causing disputes over additional tax due to misreporting of the tariff as specific machine parts.

The customs further pointed out that the correctness of the tariff declaration for imported goods involves the application of tax rates and import regulations. According to Note 2 (A) of Class 16 of the Customs Import Tariff, if a part is used in a specific machine and it is an item listed in Chapter 84 or 85 of the Tariff, it should still be classified according to its own characteristics rather than its use.

Taking the water stop ring of the tool holder of a milling machine as an example (made of alloy steel and covered with rubber), businesses often declare tariff code 8466.92.00 "Section 8465 Parts and accessories of machine tools" with a tax rate of 2.5% because the part is dedicated to milling machines. However, according to the above classification principle, the water stop ring achieves the effect of water stopping by its sealing properties and should be classified under the exclusive tariff code 8484.10.00 "Sealing gaskets and similar bonding gaskets composed of metal sheets and other materials or two or more layers of metal sheets" with a tax rate of 5%. Such misreporting may not only cause customs clearance delays, but also affect the calculation of tax amounts.

Taipei Customs finally stated that if businesses still have doubts about the import tariffs, they can apply for a preliminary review of the import tariffs in accordance with the Implementation Measures for the Preliminary Review of Import Tariffs before the goods are imported, prepare application forms and other relevant documents, and apply to the customs at the place of import for a preliminary review of the import tariffs, so as to facilitate customs clearance operations and reduce tax disputes.

Business unit: Audit Section of the Mobile Audit Group Contact person: Section Chief Gong Contact number: 3834265 ext. 4730