How to avoid overpaying customs duty & classify smarter

Your how-to guide to tariff code accuracy

If you handle HS, HTS, tariff or commodity codes, this how-to guide could save you thousands in overpaid duties.

We show you where businesses are losing out through misclassification and give you expert advice on how to achieve classification accuracy so you pay the correct duty every time. What does that mean in real terms?

No lost profits through overpayments

Mo misclassification fines

No shipment delays

Here’s how you get there.

Why accurate classification matters

-84 million import/export declarations flowed through UK borders in 2024 alone, according to HMRC  – every single one depended on a correct commodity code
-£100,000+ in overpaid duties annually is typical, in our estimations
-60%+ of businesses lack automation in classification, often meaning error-prone spreadsheets which can’t keep up with changing tariff codes
-A single retailer reclaimed £1 million in duty they had over‑paid, all traced back to inaccurate classification, according to Barbourne Brooks

The bottom line is getting the code wrong can cost you twice – first in over‑payments, then in fines and putting things right. As HMRC recommends, ‘You must identify the correct commodity code before you start completing your import or export declaration.’

The five most common mistakes affecting tariff code accuracy

1. Copy‑paste culture – recycling old codes without checking tariff book changes, GIR notes or regulation updates
2. Ignoring product tweaks – the same SKU now has an extra pocket or uses a different fabric in its composition. This tiny detail could change its tariff code
3. Inaccurate or incomplete product data provided by suppliers or brokers – without the full picture you could be classifying with only half the information you need
4. Changes to trade agreements – FTAs, regulation, WCO updates all affect your codes. Do you have a notification system in place to keep track?
5. Over‑reliance on AI classification tools without human input can lead to generalisations – a broad brush approach won’t take in product nuances that affect the right classification decision. Only a hybrid system which combines smart automation with expert human insight can deliver absolute accuracy.

What do you need to get classification right

The most essential requirement for accurate classification is having complete and full information about the product you are trying to classify. This includes a product’s description, characteristics, composition and function.

You will need documentation and details from your suppliers (who know your products best) on key elements such as:

-Specifications (size, dimensions)
-Compositions (materials used: wood, metal, plastic, or food ingredients including fat content)
-Intended use
-Preparation or manufacturing details (cooking techniques, manufacturing details)
-Performance specifications (voltage, capacity, flow rates)

Getting any of these details wrong will likely give you the wrong code meaning an incorrect duty payment.

What to do about over‑payment of customs duties

HMRC now lets firms claim back excess duty and the reclaim window is capped at three years. What this means is that if you suspect you have overpaid duty, it’s worth checking to see if you can claim. And most importantly, implement a system which means you don’t have to go through the hassle of doing this in the future.

Find out more about how TariffTel ensures you’re not over-paying duties and gives you peace of mind your HS codes are always up-to-date and compliant.