In order to facilitate and harmonize trade between countries, each good must be classified using a code, generically known as a tariff code, which can be understood by other countries, at least partially. Although the actual tariff classification of goods should be imposed by each country or region (such as Mercosur), common rules and guidelines on the criteria to be adopted for classification are very useful, especially because technological innovations, new tastes, and other factors lead to the constant creation of new products, which must also be classified.
In this regard, Brazil recently incorporated the new rules and guidelines published by the World Customs Organization (WCO). In particular, RFB Normative Instruction No. 2,169, of December 29, 2023, approved the consolidated text of the Explanatory Notes to the Harmonized Commodity Description and Coding System, and RFB Normative Instruction No. 2,171, of January 10, 2024, approved the Portuguese version of the Collection of Classification Opinions of the WCO Harmonized System Committee approved up to June 2023.
The Explanatory Notes mean an official interpretation of the Harmonized System at the international level, and it covers the General Interpretative Rules, Section Notes, Chapter Notes, and Subheading Notes (which are integral parts of the Harmonized System), as well as establishes the scope of headings and subheadings. These rules contain the technical descriptions of goods and internationally accepted practical indications as to the classification and identification of goods.
The new version of the Explanatory Notes (it was last updated in 2017), included the changes made by the WCO based on the Customs Cooperation Council Recommendation of June 28, 2019, effective as of January 1st, 2022.
The WCO Classification Opinions, in turn, consist of opinions of this organization that guide the interpretation of the harmonized system, and they seek a certain uniformity in the adoption of tariff classification. A collection of them is published from time to time. These opinions must be internalized in the legal system of each contracting party to the International Convention on the Harmonized Commodity Description and Coding System, which was approved, in Brazil, by Legislative Decree No. 71/1988 and promulgated by Decree No. 97,409/1988.
These opinions are binding for the Brazilian Federal Revenue Service (RFB) and for other Brazilian players in international trade, and they are adopted as a fundamental subsidiary element for the classification of goods with characteristics similar to those of the goods being analyzed.
The previous versions of the WCO Classification Opinions of 2020, 2018, and 2017 were revoked with this Normative Instruction.
Thus, both the Explanatory Notes and the WCO Opinions guide the customs authority, Brazilian companies, and foreign trade operators in the appropriate choice regarding the tariff classification of goods. The correct classification enables the proper application of taxes and of administrative treatment due in the import and export of goods and it prevents assessments, delays, and penalties for Brazilian companies, as well as promotes the proper compilation of statistics that contribute to the formulation of public policies to foster international trade.
