Commodity code classification
No matter how many product codes you want classified, we will help you through the entire process.
Commodity code classification at Tullify
One of the cornerstones of customs processing is commodity code classification. In other words, classifying your goods correctly.
Classification of goods involves determining a specific commodity code for each item. Export processes use eight-digit CN codes, while import processes require ten-digit TARIC numbers according to the applicable customs tariff. We will help you classify the commodity code with eight or ten digits, depending on whether it is an import or export.
Optimize your imports with correct commodity code classification. Every item that crosses an international border is assigned a unique commodity code that is crucial for customs processing. This code is key because it not only determines what duties, taxes and other charges are due, but also affects official import statistics.
For smooth and correct classification, it is necessary that each importer uses the correct commodity code according to the detailed customs tariff, TARIC (Integrated Tariff of the European Communities), which is a common standard for all EU countries.
This list is continuously updated to reflect changes in legislation and trade agreements, and can be easily found via the Swedish Customs.
The importance of correct commodity code classification!
Correctly classifying your goods is crucial for several reasons:
Economic efficiency: By ensuring that the correct duties and taxes are paid, you avoid unnecessary costs and potential fines for misclassification.
Regulatory compliance: Proper use of commodity codes ensures that you comply with applicable import and export regulations, reducing the risk of border delays and other legal complications.
Contribution to accurate trade statistics: When goods are classified correctly, you contribute to maintaining accurate and fair trade statistics, which is crucial for national and international economic planning and analysis.
Contribution to accurate trade statistics!
When goods are classified correctly, you help maintain accurate and fair trade statistics, which are crucial for national and international economic planning and analysis.
How can we assist in commodity code classification?
At Tullify, we understand that commodity code classification can be complex and time-consuming. That’s why we offer our clients comprehensive support in this process. With our expertise and access to the latest updates in the EU customs tariff, TARIC, we ensure that your classification is correct. Our team of experts will help analyze your goods and determine the most accurate commodity code, which not only saves time but also provides assurance that all customs processing is handled according to applicable regulations.
Commodity codes and their meaning
All imported goods have specific commodity codes, which are crucial for determining customs duties and taxes. A commodity code consists of eight to ten digits and it is critical to use the correct code for your goods. Incorrect commodity codes can lead to expensive and time-consuming corrections.
The product codes are divided into different levels:
- HS code (four digits)
- HS subheading (six digits)
- Combined Nomenclature (eight digits)
- Taric number (ten digits).
Understanding and correctly using these codes is one of the most important parts of the import process.
Three steps to choosing the right product code
- Explore the tariff carefully
The customs tariff is the main tool for classifying goods correctly. Within the EU, the Taric is used, which includes all valid commodity codes. To avoid mistakes, you should read the headings, subcategories and any notes carefully. It is also important to be aware of any special rules that apply to different types of goods. - Analyze the product's features
To determine the correct product code, you need to have a clear picture of the product's characteristics. Ask yourself questions such as:- What material is the item made of?
- What is it used for?
- Is it part of something larger or an independent product?
- Does it have any special characteristics that might affect its classification?
- Gather all necessary information before proceeding.
- Get help if you are not sure.
If you are unsure about which product code is correct, you can seek support from experts such as us at Tullify. Otherwise, you can contact the Swedish Customs through their customs response service.
Binding Classification Notice (BCI) – A safe guide to your classification
A Binding Tariff Information (BTI) is an important tool for businesses trading goods across international borders. A BTI is a decision issued by customs authorities that establishes the commodity code to be used for a specific good when declaring it to customs. This information guarantees that the commodity code will not be challenged as long as the goods and circumstances are the same as those described at the time of application.
Why is BKI important?
Legal certainty and predictability: A BTI provides companies with legal certainty and financial predictability. By having a binding decision on how a product should be classified, companies can feel confident that they are paying the correct customs duties and avoid future costly disputes with customs authorities.
BTI = Cost-effectiveness:
Obtaining a BTI can help companies avoid customs charges and fines that can arise if goods are incorrectly classified. It also reduces administrative burden by eliminating uncertainty around the classification of new or complex products.
International validity: BTI
are valid in all EU countries, meaning that a notification issued in one EU country is recognized by all other member states. This is particularly beneficial for companies trading in multiple EU countries, as it simplifies customs processes and minimizes the risk of inconsistencies in product classification.
How do you apply for a BTI?
To apply for a BTI, companies must submit an application to the national customs authorities of the country where they are established or where they first intend to clear the goods. The application should contain detailed information about the goods, including their function, composition and use. It is also important to attach technical descriptions, images and possibly a sample of the goods to facilitate the authorities’ assessment. A BTI is usually valid for three years and can be renewed if necessary. To ensure that your company continues to benefit from a BTI, it is important to regularly review and update your notifications in accordance with any changes in the product range or customs legislation.
Summary BTI
Binding Classification Notices are an indispensable tool for all companies involved in international trade. By ensuring correct customs classification, BKI minimizes the risk of legal disputes and financial losses, while contributing to a smoother trade process. Tullify AB can assist your company in the BKI application process, ensuring that you receive all the necessary guarantees that your goods are classified correctly and efficiently.
Contact us
We look forward to hearing from you and will do our best to respond as soon as possible!
The most frequently asked questions about classification
How do I find the correct product code?
What does commodity code mean?
How is a product code structured?
Commodity codes in the system are usually made up of six to ten digits depending on the level of detail and country. The first six digits are internationally agreed (HS code), while the remaining digits may vary from country to country for further specification.
