TARIFF questions and answers with
solutions
What chapter classify a wax candle? - ANSWER Chapter 34
Which chapter classify an avocado? - ANSWER Chapter 8
Which chapter should an electric lamp be classified? - ANSWER Chapter 94
Which chapter should batteries be classified? - ANSWER Chapter 85
What chapter classifies a hammer? - ANSWER Chapter 82
What are Tariffs? - ANSWER Tariffs on goods vary from high rates to very low rates or no duty
at all. For instance in our tariff a refrigerator is 5% while all types of waters are 100%; similarly,
unmanufactured tobacco is 10% and manufactured tobacco is 220%. Tariff rates are determined
by the Cabinet and rates are subject to changes each fiscal year as the Government sees fit.
Tariffs or Customs Duties are collected at the border during Customs clearance and have several
different functions: - ANSWER 1. Generates Revenue for the Government
2. Protect domestic businesses e.g. Epic Battery & Aqua pure water, and raises the price on
foreign goods.
3.Assist in industry growth of the country.
What is a Tariff Schedule? - ANSWER The Tariff Schedule is a printed list of duties and taxes
that are levied on goods imported into the country.
What is a Tariff Schedule? - ANSWER In most countries this schedule is published and available
for public use. In Customs we call it our Bible. This is the most important tool you will need to
be a successful Customs Broker. Millions of dollars of taxes are lost because Brokers & Officers
do not use the Schedule effectively.
Introduction to the Tariff Schedule - ANSWER The Bahamas is a part of a Global community;
therefore we must conduct our business as if we are a part of that community. Our Tariff
Schedule is a Harmonized Tariff Schedule, (HTS) AKA the Harmonized System (HS). What
does it mean by Harmonized? it agrees or en-sync with something else.
What is The Harmonized System? - ANSWER The Harmonized System is a Harmonized
Commodity Description and Coding System, also referred to simply as the(HS); it is an
international product Nomenclature of a standardized system of names and numbers to classify
traded products.) This system was developed by the WCO.
, The Harmonized System was established to: - ANSWER 1. To facilitate international trade.
2. To facilitate the collection, comparison and analysis of statistics, in particular those on
international trade.
3. To facilitate the standardization of trade documentation and transmission of data.
What is the Harmonized System -H.S.? - ANSWER The Harmonize System, is used
internationally allowing participating countries to classify goods on a common or unified basis
for international trading purposes, e.g. the same tariff classification we use for shoes, or
television or cell phone will be the same code that will be used in the United States, Canada,
India, Great Britain or any country that is a part of the WCO.
Structure of the Tariff - ANSWER 1.The HS comprises of just over 5000 articles/products
descriptions that appear as Headings and Subheadings.
2. 21 Sections
3. 7 Chapters
Some countries, (the Bahamas included) has two additional chapters, 98 & 99. These chapters
were reserved for contracting parties special purposes.
4. Chapter 77 is not in use at this time it is reserved for future use.
The HS is a structured, hierarchical system; meaning it has progressively more specific levels of
detail that it is divided into: - ANSWER Sections -which is further divided to
--Chapters -divided into
--Headings -and into
--Subheadings
SECTIONS - ANSWER A section is a group of chapters which cover similar or related goods;
for example:
•Section 1 chapters 1-5 LIVE ANIMALS; ANIMAL PRODUCTS
Section 2 chapters 6-14 - ANSWER VEGETABLE PRODUCTS
Section 3 chapter 15 - ANSWER ANIMAL OR VEGETABLE FATS AND OILS AND THEIR
CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES.
PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO AND
MANUFACTURED TOBACCO SUBSTITUTES. - ANSWER Sections 4 chapters 16-24
Section 5 chapters 25-27 - ANSWER MINERAL PRODUCTS
Section 6 chapters 28-38 - ANSWER PRODUCTS OF THE CHEMICAL OR ALLIED
INDUSTRIES
solutions
What chapter classify a wax candle? - ANSWER Chapter 34
Which chapter classify an avocado? - ANSWER Chapter 8
Which chapter should an electric lamp be classified? - ANSWER Chapter 94
Which chapter should batteries be classified? - ANSWER Chapter 85
What chapter classifies a hammer? - ANSWER Chapter 82
What are Tariffs? - ANSWER Tariffs on goods vary from high rates to very low rates or no duty
at all. For instance in our tariff a refrigerator is 5% while all types of waters are 100%; similarly,
unmanufactured tobacco is 10% and manufactured tobacco is 220%. Tariff rates are determined
by the Cabinet and rates are subject to changes each fiscal year as the Government sees fit.
Tariffs or Customs Duties are collected at the border during Customs clearance and have several
different functions: - ANSWER 1. Generates Revenue for the Government
2. Protect domestic businesses e.g. Epic Battery & Aqua pure water, and raises the price on
foreign goods.
3.Assist in industry growth of the country.
What is a Tariff Schedule? - ANSWER The Tariff Schedule is a printed list of duties and taxes
that are levied on goods imported into the country.
What is a Tariff Schedule? - ANSWER In most countries this schedule is published and available
for public use. In Customs we call it our Bible. This is the most important tool you will need to
be a successful Customs Broker. Millions of dollars of taxes are lost because Brokers & Officers
do not use the Schedule effectively.
Introduction to the Tariff Schedule - ANSWER The Bahamas is a part of a Global community;
therefore we must conduct our business as if we are a part of that community. Our Tariff
Schedule is a Harmonized Tariff Schedule, (HTS) AKA the Harmonized System (HS). What
does it mean by Harmonized? it agrees or en-sync with something else.
What is The Harmonized System? - ANSWER The Harmonized System is a Harmonized
Commodity Description and Coding System, also referred to simply as the(HS); it is an
international product Nomenclature of a standardized system of names and numbers to classify
traded products.) This system was developed by the WCO.
, The Harmonized System was established to: - ANSWER 1. To facilitate international trade.
2. To facilitate the collection, comparison and analysis of statistics, in particular those on
international trade.
3. To facilitate the standardization of trade documentation and transmission of data.
What is the Harmonized System -H.S.? - ANSWER The Harmonize System, is used
internationally allowing participating countries to classify goods on a common or unified basis
for international trading purposes, e.g. the same tariff classification we use for shoes, or
television or cell phone will be the same code that will be used in the United States, Canada,
India, Great Britain or any country that is a part of the WCO.
Structure of the Tariff - ANSWER 1.The HS comprises of just over 5000 articles/products
descriptions that appear as Headings and Subheadings.
2. 21 Sections
3. 7 Chapters
Some countries, (the Bahamas included) has two additional chapters, 98 & 99. These chapters
were reserved for contracting parties special purposes.
4. Chapter 77 is not in use at this time it is reserved for future use.
The HS is a structured, hierarchical system; meaning it has progressively more specific levels of
detail that it is divided into: - ANSWER Sections -which is further divided to
--Chapters -divided into
--Headings -and into
--Subheadings
SECTIONS - ANSWER A section is a group of chapters which cover similar or related goods;
for example:
•Section 1 chapters 1-5 LIVE ANIMALS; ANIMAL PRODUCTS
Section 2 chapters 6-14 - ANSWER VEGETABLE PRODUCTS
Section 3 chapter 15 - ANSWER ANIMAL OR VEGETABLE FATS AND OILS AND THEIR
CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES.
PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO AND
MANUFACTURED TOBACCO SUBSTITUTES. - ANSWER Sections 4 chapters 16-24
Section 5 chapters 25-27 - ANSWER MINERAL PRODUCTS
Section 6 chapters 28-38 - ANSWER PRODUCTS OF THE CHEMICAL OR ALLIED
INDUSTRIES
