A mixed product consisting of 4 types of chocolate and 1 type of biscuit, packaged in one bag, was imported. Customs post-clearance analysis classified its HS code into two. In this case, is it possible to declare it for import under a single HS code? Released

Classification and Import Declaration of Mixed Products: Case Study of 4 Types of Chocolates and 1 Type of Biscuit

You are importing a mixed product consisting of 4 types of chocolates and 1 type of biscuit packed together in one bag, and it has been clearly confirmed through customs post-audit that two HS codes were assigned. In such cases, you cannot combine them into a single tariff heading for import declaration; you must proceed with the import declaration by applying the respective HS codes for each item. This is a legal obligation according to the classification principles of the Harmonized System Tariff Schedule (HSK) and domestic import declaration procedures.

1. Basic Principles of Item Classification and Classification of Mixed Products

The Harmonized System Tariff Schedule (HSK) is an international product classification system that assigns unique numbers based on the characteristics and nature of goods. The general classification for these products is as follows:

• Heading 1806: "Chocolate and other food preparations containing cocoa" are classified. This heading primarily covers chocolate products with cocoa as the main ingredient, and the 4 types of chocolates you inquired about fall under this category.
• Heading 1905: "Bread, pastries, cakes, biscuits and other bakers' wares (whether or not containing cocoa)" and similar products are classified. Biscuits, due to their manufacturing method and primary raw material characteristics, are generally classified under this heading, and the 1 type of biscuit you inquired about falls under this category.

The classification of goods is carried out according to the General Rules for the Interpretation of the Harmonized System. Specifically, for mixtures or composite goods consisting of different kinds of goods packed together for sale, General Rule 3 may apply. General Rule 3(b) stipulates that when mixtures, composite goods, or goods put up in sets for retail sale can be considered as a single article, they shall be classified according to the 'material or component which gives them their essential character'. However, this rule primarily applies when components are not clearly separable or when they function as a whole.

Like the product you inquired about, chocolates and biscuits are independent articles, each possessing distinct characteristics and uses. It is difficult to consider them as having a single essential character under General Rule 3(b) merely because they are packaged together in one bag. The customs post-audit result, classifying them under two HS codes, implies that customs also determined that each product maintains its own unique nature and characteristics, and therefore cannot be consolidated under a single tariff heading based on essential character. In other words, it was determined that the chocolates distinctly possess the characteristics of Heading 1806, and the biscuits distinctly possess the characteristics of Heading 1905.

2. Import Declaration Method and Importance

Import declarations must be made individually for each HS code. Currently, when filing an import declaration through the Korea Customs Service's electronic customs clearance system (Uni-Pass), it is possible to add multiple line items within a single import declaration form. This means that even if goods are physically packaged in one bag, if they contain items classified under different HS codes, you must accurately declare the HS code, quantity, price, and other details for each item.

• Accurate Payment of Customs Duties and Taxes: The customs duty rate, value-added tax rate, individual consumption tax rate, etc., may vary for each HS code. It is crucial to pay the legitimate taxes according to legal regulations through accurate item classification and declaration.
• Fulfillment of Import Requirements: Goods under certain HS codes may require import requirements such as permits, approvals, or inspections from relevant agencies like the Ministry of Food and Drug Safety or the Animal and Plant Quarantine Agency. Since chocolates and biscuits are food products, it is necessary to accurately identify and fulfill the import requirements, such as those under the Food Sanitation Act, applicable to each item for customs clearance to be possible. Different items may have different requirements.
• Preparation for Post-Verification: Customs conducts post-audits to verify declared contents even after the import declaration. Item classification errors can lead to administrative penalties such as additional customs duties, surcharges, and fines, and in severe cases, may result in punishment for violating the Customs Act. The fact that the item classification has already been distinguished by customs' post-audit is a strong signal that non-compliance with that classification could be considered a clear violation of legal regulations.

3. Additional Considerations and Recommendations

If you plan to import similar mixed products in the future, the safest and surest method to resolve uncertainty is to apply for an 'Advance Classification Ruling' with the Korea Customs Service. An Advance Classification Ruling is a system where the HS code for imported (or soon-to-be imported) goods is confirmed in advance by the Korea Customs Service. This decision carries legal binding force, which can reduce friction during the customs clearance process and increase predictability.

In conclusion, for the product you inquired about, you must proceed with the import declaration by applying separate HS codes for each item, in accordance with the customs post-audit results and the principles for interpreting the Harmonized System Tariff Schedule. It is important to understand that this is not merely for convenience of declaration but a crucial process for complying with customs regulations and executing accurate customs clearance procedures.