Product classification
Every product exported or imported is classified under a product or tariff code. The classification determines which tariffs and requirements apply to a product in a specific country. The product codes provide information on:
- the tariff rates;
- the taxes and, if any, additional duties;
- any applicable trade defence measures (e.g. anti-dumping)
- import and export formalities and other non-tariff measures (health certificates, quality controls, certification, etc.)
The global classification system is called the Harmonized System (HS). It is a system developed by the World Customs Organisation (WCO) and comprises more than 5,000 commodity groups. It is organised in a hierarchical structure according to:
- 21 sections
- 97 chapters (2 digits)
- about 1,200 headings (4 digits)
- more than 5,000 sub-headings (6 digits).
It is supported by rules of interpretation and explanatory notes. Virtually all countries apply the HS as reflected in a nomenclature maintained by the WCO.
The Combined Nomenclature of the European Union (EU) is an eight-digit coding system, comprising the HS codes with further EU subdivisions and legal notes specifically created for the needs of the EU.