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Old 12-14-2020, 10:52 AM   #1
FETTFAN
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Uk Harmonized codes

Hi

I know this topic has been raised many times over the years but I do not understand why Sideshow use harmonized code 3926400000 charged at 26%(Plastics and articles thereof; rubber and articles thereof) on the commercial invoice instead of the more relevant 9703.00.0000 charged at 5% (Original sculptures and statuary, in any material when shipping statues).

It seems clear to me statues meet the 9703 criteria or am I missing something.

Any thoughts?
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Old 12-14-2020, 12:53 PM   #2
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They used to use a 5% code back in the day. They say they were forced to change, although if they have changed again and are indeed using that one now, it makes little sense. with prices as they are in general these days, you'd think they would work with us a little more on the tax codes...
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Old 12-14-2020, 12:55 PM   #3
darren1228
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Pretty sure it was the UK government enforcing this. When I lived in the UK Sideshow originally used the code that only resulted in 5% VAT. Unfortunately the code only applied to statues produced in limited numbers. It doesn’t apply to statues based on comic book/movie characters produced in the hundreds if not thousands.
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Old 12-14-2020, 01:01 PM   #4
FETTFAN
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Thanks for your thoughts.

The GOV.UK Tariff tool states 9703 should be applied to Collector pieces (97) and original sculptures and statuary in any material(03)

I agree Sideshow cannot use this tariff for all products they sell but surely in some cases it will apply?

The Tariff checker states that the 39 commodity code applies to Plastics and thereof: rubber. Can it be argued that a limited edition Polystone statue does not fit this criteria.

Finally if you input statue into the tariff tool the options are 1, Statues Original works of art 2/ Statuettes, plastic

It is illegal for any person or company to misrepresent goods for VAT and Duty purposes. Therefore, surely it is illegal if the UK Government to apply a widespread code which may not be relevant.
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Old 12-14-2020, 03:46 PM   #5
DeadGhostKnight
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Wasn't the issue that the 9703 code applied to none mass produced sculpture like less than 10 produced or something similar?
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Old 12-14-2020, 05:04 PM   #6
FETTFAN
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Quote:
Originally Posted by DeadGhostKnight View Post
Wasn't the issue that the 9703 code applied to none mass produced sculpture like less than 10 produced or something similar?
The tariff 9703 states ‘ Heading 9703 does not apply to mass-produced reproductions or works of conventional craftsmanship of a commercial character, even if these articles are designed or created by artists."

The above statement does not define a figure for mass-produced and the official definition of a commercial character is ‘Characters designed for use in a commercial context are essentially there to sell a product or service to an audience. For example Ronald McDonald.

It’s all very vague and open to interpretation when you begin delving.

However, the first criteria of the 97 tariff is a ‘collectors piece’ which what statues are.
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Old 12-14-2020, 06:44 PM   #7
WhistlingTime
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I'm not from the UK, so I have no experience with these tariffs, but it seems pretty clear that Sideshow statues would not meet the 9703 criteria.

Quote:
Originally Posted by FETTFAN View Post
...
The Tariff checker states that the 39 commodity code applies to Plastics and thereof: rubber. Can it be argued that a limited edition Polystone statue does not fit this criteria.
...
Given that polystone is a plastic, I can't see why it wouldn't fit this criteria based on material.

Quote:
Originally Posted by FETTFAN View Post
The tariff 9703 states ‘ Heading 9703 does not apply to mass-produced reproductions or works of conventional craftsmanship of a commercial character, even if these articles are designed or created by artists."

The above statement does not define a figure for mass-produced and the official definition of a commercial character is ‘Characters designed for use in a commercial context are essentially there to sell a product or service to an audience. For example Ronald McDonald.

It’s all very vague and open to interpretation when you begin delving.

However, the first criteria of the 97 tariff is a ‘collectors piece’ which what statues are.
You have to be careful not to take just one or more terms without also considering the full context of the sections in which they're contained.

When you look at chapter 97 as a whole, it does seem to represent the more traditional definition of collectables and art. Then, in my opinion, that third chapter note regarding the 'mass-produced reproductions' and "craftsmanship of a commercial character" is what expressly excludes Sideshow statues.

'Commercial character' isn't referring to the subject of the piece - it's referring to the purpose of the creation. Instead, you could read that part of the note as 'works of conventional craftsmanship of a commercial nature.'

The statues Sideshow sells are certainly not original works. A sculpt/model is commissioned, prototype produced, then the numerous copies (or reproductions, one might argue) are fabricated on a production line in overseas factories. To me, that's the basic process for any mass-produced product. I don't think putting numbers on the pieces changes that 'commerical character' of the venture.

If you personally commissioned an artist to create a (subject of choice) statue, then I would certainly expect that to meet the 9703 criteria.
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Old 12-14-2020, 11:49 PM   #8
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Quote:
Originally Posted by WhistlingTime View Post
I'm not from the UK, so I have no experience with these tariffs, but it seems pretty clear that Sideshow statues would not meet the 9703 criteria.


Given that polystone is a plastic, I can't see why it wouldn't fit this criteria based on material.


You have to be careful not to take just one or more terms without also considering the full context of the sections in which they're contained.

When you look at chapter 97 as a whole, it does seem to represent the more traditional definition of collectables and art. Then, in my opinion, that third chapter note regarding the 'mass-produced reproductions' and "craftsmanship of a commercial character" is what expressly excludes Sideshow statues.

'Commercial character' isn't referring to the subject of the piece - it's referring to the purpose of the creation. Instead, you could read that part of the note as 'works of conventional craftsmanship of a commercial nature.'

The statues Sideshow sells are certainly not original works. A sculpt/model is commissioned, prototype produced, then the numerous copies (or reproductions, one might argue) are fabricated on a production line in overseas factories. To me, that's the basic process for any mass-produced product. I don't think putting numbers on the pieces changes that 'commerical character' of the venture.

If you personally commissioned an artist to create a (subject of choice) statue, then I would certainly expect that to meet the 9703 criteria.
Thanks for your thoughts and I agree the codes need to be applied based on the whole criteria.

However, where I have concerns is the application or user friendliness of the harmonized tool to establish the correct commodity code particularly for customers who have no knowledge of tariffs. When using the tool and entering statue in the search facility the matching result that appears is based on the initial wording/search criteria that the word ‘Statue’ provides. This is 97. The tool then informs the user this criteria is ‘Works of art, collectors' pieces and antiques’ code 9703. Immediately as a customer in my view I believe I have the correct commodity code as the item I have purchased is a collectors piece, hence the name most manufacturers use such as Sideshow Collectibles, PCS Collectibles. Will customer fully explore all the legal text and as I say what defines a collectible based on what customers believe they are purchasing. Maybe Sideshow should change their name from Sideshow Collectibles to Sideshow Mass Producers.

Also it is easy for customers to believe what they have purchased is a limited hand crafted item as the manufacturers have conditioned them to believe this. I have read and experienced on numerous occasions where a customer has received a statue with flaws and the statue manufacturer have responded by saying the item is a hand crafted/painted original limited edition.

In regards to Polystone being a plastic I fully agree. However, where I disagree is when you send an item by courier and it gets broken if you state the item is Polystone they will argue it is not plastic and not insure you for a plastic item as Polystone is easily more breakable.

In essence the points I am trying to make is firstly depending on the outcome a customer, manufacturers or service providers want to achieve the application of wording can be at worse misleading or at best lead to genuine confusion.

Secondly the UK commodity code tool search criteria is not accurate as for a end user when entering ‘statue’ the search facility result in its purist form retrieved code 97. Maybe the commodity wording needs reviewed.

Thirdly, although I accept it is impossible for HMRC to cover every scenario customers believe when purchasing a limited edition statue that they have purchased a Collectors piece which meets the criteria for code 97. manufacturers can equally argue that the item is a mass produced piece code 3926.Both are true depending on your point of view. If both codes attracted the same or similar charges we would not be having this discussion but as there is a huge 21% difference then naturally this will lead to different views. And I admit if code 3926 attracted a 5% charge and 9703 a 26% charge I would be saying the item was a mass produced piece and maybe HMRC would argue it’s a collectible item.
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Old 12-21-2020, 10:24 AM   #9
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Just an update for UK customers.

I received a reply from HMRC clarifying that commodity code 9703 (5% rate) should have been applied to my purchase from Sideshow. This was determined on the item being a collectible, limited to 350 pieces and made of polystone.
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Old 12-21-2020, 12:06 PM   #10
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Quote:
Originally Posted by FETTFAN View Post
Just an update for UK customers.

I received a reply from HMRC clarifying that commodity code 9703 (5% rate) should have been applied to my purchase from Sideshow. This was determined on the item being a collectible, limited to 350 pieces and made of polystone.
That sounds great. Go for you for inquiring. Does this mean you'll get some sort of refund?
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