HS Code

Your commodity code defines the rules around your import and export, from regulations and permits to duty rates and preferential origin. Learn about HS and commodity codes in this article.

Your HS code can change for the same commodity after some processing, but did you know that this can also change your obligations? Simone Creviari explains classification and CBAM in this article.

Goods classification, together with the country of origin and customs value, is used by the customs authority to determine the number of import duties or other levies that need to be paid. Customs Authorities may find you are using the wrong HS Code when they check one of your shipments. When you are AEO Certified, the Customs Authority periodically audits your company. During these audits, they also check the quality of your product classifications.

When you import goods into the European Union, you need to pay import duties. In some cases, this can be a preferential rate, meaning a lower rate or even a 0% rate. In some cases, you also have to pay anti-dumping duties.

Determination of the customs classification for goods is essential to ensure that goods are correctly classified according to the harmonised system used worldwide. Customs classification is also essential because it is linked to:

On January 1st 2022 there will be significant changes in the harmonized system that can impact the commodity codes you are using. From a customs compliance point of view, it is recommended to check your commodity codes, Customs Support can take this burden off your mind and perform these checks for you.

It is essential to comply with all customs rules and regulations. Non-compliance can lead to delays, fines, or even refusal of your shipment. Sometimes the line between compliance and non-compliance is thinner than companies realize. We are seeing an increased number of issues with imported bike parts, where the Customs Authority sees them not as bike parts but as non-assembled bicycles.

How you classify your goods from a customs point of view matters. Wrongly classifying your goods can lead to delays in your customs declaration process or delays when the Customs Authorities detain a shipment at the border. It can also lead to higher duties and even significant fines.

Customs Authorities require you to categorise your products with an HS-code(s). Learn more below: