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ASEAN countries will implement a new unified set of tariff codes for the classification of all goods traded within and outside the region from next year.

This harmonized set of tariff codes works as a sort of dictionary, used by traders and Customs officials to classify goods.

All goods are identified by a unique eight-digit code, with the tariff rates tagged to them by individual Asean countries.

For example, mineral water has its own tariff code, while sparkling wine has another.

With the adoption of a common set of tariff codes in Asean, traders will benefit from having a unified and consistent way of classifying goods.

The tariff code used by a Singapore trader to classify a product being exported will be the same as that used by his buyers in Malaysia, Thailand or Vietnam.

This makes it easier and more transparent for traders to determine the applicable import tariffs imposed by different Asean countries.

From the tariff codes, traders would also be able to determine whether the goods are eligible for preferential tariffs under the different free trade agreements.

The Asean Harmonized Tariff Nomenclature, as it is called, will also be used by Customs administrators to monitor the movement of goods for purposes such as food security, public health, environmental protection and counter-terrorism.

The revised set of tariff codes will be incorporated in the upgraded version of Singapore's TradeNet system for processing and approving all Customs- related permits.

Reprinted courtesy of Straits Times Indonesia. To subscribe to Straits Times Indonesia and/or the Jakarta Globe call 021 2553 5055.