Question

   What are the various factors used in classifying commodities for tariff purposes?

Answer 1

Tariff Classification is the process of determining the correct tariff code for imported and exported goods. Classification of goods is relevant from a customs point of view.Different commodities have different classifications of tariff. The commodities will be classified by perishable and non perishable goods. Food item, electronic items, medical instruments, and different other commodities and classify by their nature of production.

Here are some common factors used;

1. .Class Rates-provides a rate for any commodity between any two points. It is constructed from uniform distance and product systems.
2. Exception Rates-carriers in particular regions can depart from the product scale system for any one of many possible reasons.
3. Commodity Rates:employed for specific origin-destination shipping patterns of specific commodities.
4. Special Rates:evolved either as a result of special cost factors or to induce certain shipment patterns
5. Underdeveloped countries-key ingredient to progress to economic development and independence is transportation