Insertion of a new 8-digit tariff code
Globally, the tariff book is identical, up to the first 6 digits, for all 179 members of the World Customs Organisation (WCO). Beyond 6 digits, individual countries can create new tariff codes and apply specific duty rates for those tariff codes, as they wish. This leads to a very interesting application for 8-digit tariff codes, which is the more accurate defining of tariff codes for specific products. This allows for a number of important actions to be taken, because the impact of those actions is now more confined.
The first, and most common use of 8-digit tariff codes, is to increase duties on a specific tariff subheading, without impacting all of the other products included within that subheading.
The second application is the reverse of this, when duties should be reduced without impacting the products that are produced locally and where a rebate of duty is not possible. Rebates of duty can usually only be accessed if the product imported forms part of a manufacturing process. 8-digit tariff codes allow duties to be reduced even when the imported product is not a raw material in a manufacturing process.
The third application is for monitoring purposes. The trade statistics issued monthly by SARS is of limited value when those statistics refer to a really broad tariff code. By creating a new, more descriptive, tariff code, interested companies can more accurately monitor the traffic through a given tariff code. Tools like Stratalyze allow this monitoring to be done more effectively.