HS codes

In customs formalities, using the correct commodity code is essential. This code determines the amount of customs duty due, whether a tariff preference (reduced rate) applies and which formalities are required. For instance, an im- or export authorisation might be required or worse the goods are banned due to sanctions. However, determining the correct commodity code, is not always a simple task.

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What is an HS code?

An HS code is a six-digit code developed by the World Customs Organization (WCO), originating from “the harmonized commodity description and coding system,” commonly referred to as the harmonized system or simply HS. This is a multifunctional international product nomenclature currently adopted by 212 countries, territories, and customs or economic unions. More than 98% of international trade is classified using the HS. In international trade, the HS code (harmonized system code) is the most widely used identification method for goods.

When referring to an HS (or GS-code in Dutch), we are referring to a six-digit code. Globally, the system is identical up to the first six digits.

On average, a revision of the GS occurs every five years. The first revision was in 1992 (with GS in use since 1988), and to date, there have been six revisions. The seventh revision or edition became effective on 1 January 2022, with 351 changes introduced.

CN-code

Each individual country can expand the HS code of a product by adding extra digits. Within the EU, we use a single system with eight-digit codes across all 27 member states. These are HS-codes supplemented by two additional digits, known as the CN-code (combined nomenclature) in English. Since 1988, the EU has employed this eight-digit system.

For export declarations, the eight-digit code is sufficient. For import declarations however, this eight-digit code is further extended (up to a maximum of 22 digits). This is referred to as the commodity code .

The CN-codes are established in annex 1 of regulation (EEC) no 2658/87. Each year, a formal update is introduced through an implementing regulation. For example, in 2022, implementing regulation (EU) no 2021/1832 contained the latest revisions, typically published in the previous year. In 2022, for instance, 593 commodity codes (eight digits) were modified compared to 2021. It 

TARIC-code

When importing goods, an expanded CN code is needed. The CN code is extended by two digits, forming a ten-digit code known as the TARIC-code. The ninth and tenth digits indicate various measures applicable to the import of goods. By including these measures in a code, they can be automatically determined .

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