INTERNATIONAL CONFERENCE PEDAGOGICAL REFORMS AND
THEIR SOLUTIONS
VOLUME 11, ISSUE 01, 2025
104
TOPICAL ISSUES OF THE CLASSIFICATION OF GOODS IN CUSTOMS
SPHERE
Kuvatova Zakhro Orifjonovna
Teacher of Customs Institute
Annotation:
The article is devoted to the study of the issues of classification of goods in
accordance with the Commodity nomenclature of foreign economic activity of the Republic of
Uzbekistan. Moreover considered, the features of attribution of goods as “risk” and “cover”
groups.
Keywords:
Harmonized system, classification of goods, Commodity nomenclature, foreign
economic activity, risk goods, cover goods, customs payments.
Unification and harmonization of systems for describing and coding goods used to form the
system of customs tariffs is the most important area of international cooperation in the
field of customs. Currently, most countries in the world are guided by the Harmonized System
of Description and Coding of Goods, which makes it possible to significantly simplify the
movement of goods across the customs border and increase the turnover of international trade
in goods.
The Сommodity nomenclature of foreign economic activity of the Republic of Uzbekistan
(hereinafter RUz) is a systematized list of goods that is used to regulate foreign trade. It
includes the code designations of goods, their names, as well as the abbreviated name of the
units of its measurement.
The differentiation of goods in the Commodity Nomenclature of Foreign Economic Activity of
the RUz is made according to objective principles. The most common criterion is the material
from which the product is made and its function. Also important principles are the degree of
processing, the relevance to a particular industry, the purpose of the goods and its peculiarities
associated with the conditions of storage and transportation.
The topic of classification of goods in accordance with the unified Commodity nomenclature of
foreign economic activity of the RUz is one of the most pressing issues for participants in
foreign economic activity. Firstly, the assignment of a product to one or another classification
code of the Commodity Nomenclature of Foreign Economic Activity often requires special
technical knowledge and additional examinations related to determining the technical
characteristics of the product, methods of its production, and so on. Secondly, the rate of duty,
value added tax and, accordingly, the amount of customs payments to be paid depends on
which classification code of the Commodity Nomenclature of Foreign Economic Activity the
goods will be assigned to.
When classifying goods in accordance with the Commodity Nomenclature of Foreign
Economic Activity of the RUz, it is necessary:
to know the device and purpose of the goods, the principle of operation of the goods, the
material from which the goods are made, and so on;
to observe the coding procedure adopted in the Harmonized System in accordance with
the Basic Rules of Interpretation, ensuring the uniform application of the Commodity
Nomenclature of Foreign Economic Activity.
Thus, for the classification of goods for customs purposes, you must have:
• commercial and (or) product name of the product, its description, including in the form;
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• values of the actual properties of the goods that affect its classification according to the
Commodity Nomenclature of Foreign Economic Activity.
The problems of classification of goods in accordance with the Commodity Nomenclature of
Foreign Economic Activity are common to all types of products. When attributing certain types
of goods to a certain code of the Commodity Nomenclature of Foreign Economic Activity,
difficulties arise due to the need to use special technological knowledge, which leads to
numerous errors in determining the proper subheading of the goods.
The main factors leading to errors in classification in accordance with the Commodity
Nomenclature for Foreign Economic Activity are as follows:
• the complexity of the system, requiring special work skills;
• the influence of a subjective approach on the process of assigning a classification code;
• lack of knowledge in various spheres of life;
• the possibility of attributing goods to more advantageous commodity items.
The consequences of an incorrect code definition for a participant in foreign economic activity
can be the most unpleasant. For example, it may turn out that it is required to pay a significantly
larger amount of customs payments in comparison with the planned one, or it may require the
submission of permits that were not received on time by a participant in foreign economic
activity, or even the question of initiating an administrative offense case will arise.
The classification issues of parts and accessories in the Commodity Nomenclature of Foreign
Economic Activity are very complex and require special training. Therefore, in addition to the
decisions and clarifications on the classification adopted by the customs authorities, the
Explanations to the Commodity Nomenclature of Foreign Economic Activity should be used in
the part where they may be applicable.
In order to identify potential errors in the classification of goods, the customs authorities use a
system for assessing possible cases of inaccurate declaration.
Risk goods
- goods transported across the customs border, in respect of which risks are
identified or there are potential risks.
Cover goods -
goods that, with a reasonable degree of probability, can be declared instead of
goods of risk.
The list of "risk" and "cover" items is very impressive. In less than three months, the number of
"risk goods" has doubled: from 37 to 74 positions. Cover goods are declared instead of "risk"
goods. Lists of goods of "risk" and "cover" groups should be updated at least once a quarter, or
even more often. The source is operational information. In addition to products with difficult to
pronounce names such as "dioctylorthophthalates" and "anionic substances", the list is
supplemented by quite used and popular refrigerators, freezers, dishwashers, cosmetics and
make-up products, cheeses, tires, chocolate.
One of the problems in trade practice when classifying goods in accordance with the
Commodity Nomenclature of Foreign Economic Activity is the existence of different semantic
meanings of the same names of goods.
When assessing risks when classifying goods, the following factors are used:
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• rate of duty;
• industry or product group;
• the historical accuracy of the declared information. Currently, more and more attention is paid
in the world to obtaining natural and safe food for human health, caring for the health of plants
and animals, and environmental protection.
In other cases, risks can be attributed to goods according to the following criteria: goods for
which high ad valorem rates are set, goods for which combined or specific rates are set, the
amount of customs duties payable per unit of goods is less than the established value, goods
with significant volumes of import, providing the largest receipts of customs payments, goods,
the volumes of import of which are much less than the volumes of their export according to the
customs statistics of the counterparty countries, goods for which there is an imbalance between
import, production and consumption. Covering goods include if goods for which low ad
valorem rates are established, a large consignment of goods subject to a low customs duty rate
or with a low value, transported under one bill of lading, goods in respect of which customs
duty rates are set, the value of which is less than the value of the rates customs duties
established in relation to goods classified in the same heading and by their characteristics and
appearance related to these goods.
When establishing a risk group for goods transported across the customs border, it is required to
determine whether the goods belong to a particular commodity item of the classifier
"Commodity nomenclature of foreign economic activity". In many cases, this criterion becomes
the only indicator of customs risk. That is, there is a risk of inaccurate declaration of the
customs value and, therefore, an underestimation of the amount of customs payments paid. In
order to prevent damage to the state budget, measures are being taken to further check the
submitted documents and, accordingly, to recover the unpaid payments. However, practice has
shown that today people seeking to circumvent the law are acting more and more professional
and sophisticated.
In conclusion, integration of the Commodity Nomenclature of Foreign Economic Activity and
the Risk Management System creates an opportunity to optimize the performance by the
customs authorities of their main functions, to avoid non-compliance with customs legislation
due to the application of preventive measures. That is why the customs authorities began to
develop methods for identifying goods of the so-called risk group and cover group with the
definition of the code of such a product according to the Commodity Nomenclature of Foreign
Economic Activity. The techniques allow: a) to identify cover goods; b) assess the degree of
risk; c) develop risk profiles; d) prevent evasion of customs payments.
References:
1.
Сustoms code of the Republic of Uzbekistan- 20.01.2016 year
2.
Товароведение. Экспертиза. Стандартизация: учебник для студентов вузов. Под
ред. В.Я. Горфинкеля, В.А. Швандера. — М.: ЮНИТИ-ДАНА, 2008. — С. 239..
3.
Пулатова Л.Т. «Классификация товаров в международной торговле:» учебник /
Л.Т. Пулатова - Т. 2016 г..
