Customs classification of goods
The classification of your goods decides the duty rate, licence requirements and quotas. With the wrong commodity code you pay the wrong duty, and the difference can be collected afterwards.
What classification is
Classifying goods means picking the code in the customs tariff that describes exactly those goods. Everything else in the declaration follows from that code.
It sounds like a formality. It is not. Two products that look alike can fall under different codes depending on material, function or how they are assembled, and the difference in duty can be several percentage points. If the goods carry an anti-dumping duty the gap is wider still.
How the code is built
The code is built in three steps. The first six digits are international, the rest are European.
- HS, six digits
- The World Customs Organization system. The same six digits apply in most of the world and are reviewed every five years.
- CN, eight digits
- The EU combined nomenclature. Eight digits are enough for an export declaration.
- TARIC, ten digits
- The EU addition for imports. The last two digits carry anti-dumping duties, quotas, licence requirements and other measures.
Levels of the code
In practice you need eight digits to send goods out and ten to bring them in. The expensive surprises sit in those last two digits.
Two products that look alike can fall under different codes. The difference shows up first on the invoice from Swedish Customs.
What we do
We produce the code from what the goods are, not from what they are called in your article list. We usually ask for product sheets, material composition and photographs, and sometimes for how the goods are used.
We document why the code was chosen. That documentation decides how a review goes, and it is almost always missing when a company has classified on its own.
If you have a long article list we go through all of it and flag the goods where the code is uncertain. Where it is justified we apply for a binding tariff information on your behalf.
When to review your codes
For new products, when a change of supplier changes the material, when the HS is reviewed, and when Swedish Customs asks a question. The last one is late, but it is when most companies get in touch.
Read on
Want the codes across your whole range reviewed? We do that in a customs consultation.
Have a single question about a code or an origin? We take it in our customs advisory.
Read more about what a customs broker does and which responsibilities stay with you.
Common questions
Who is responsible for the commodity code being right?
The declarant. Under direct representation that is you, even when we produced the code. Under indirect representation the broker is the declarant and we are jointly liable with you. The difference is explained on the customs broker page.
That does not leave you on your own. We produce the code, document why it was chosen and keep the reasoning, so there is something to show if Swedish Customs asks.
What happens if the code is wrong?
A wrong code gives the wrong duty rate, and Swedish Customs can collect the difference afterwards. A penalty charge may be added. A wrong code can also mean a licence that was in fact required was never applied for, which stops the goods at the border.
What is a binding tariff information?
A written decision from Swedish Customs on which commodity code applies to a specific product. It is valid across the EU for three years and binds both you and the customs authorities.
It is worth the effort when the goods are hard to judge and will be declared many times, or when the difference between two possible codes is large. For a one-off shipment it rarely justifies the wait.
We have used the same code for years. Is that enough?
Not automatically. The HS is reviewed every five years and TARIC changes continuously. A code that was right when it was set may have been withdrawn or split. We review your code list whenever you want, against what you actually import today.
