Goods Classification

Goods classification refers to assigning the right commodity code for your item. Many countries rely on the Harmonised System (HS) as a base, which uses a six-digit HS code as a classification, but there are others.

Countries using the HS code often extend them, such as the Combined Nomenclature (CN) in the EU, and can use different lengths for different circumstances. 

For example. the six-digit HS code could be used for an export declaration, but the same item may use a 10-digit code when being imported. 

Additional digits may be used for varieties of the same item, such as alcohol or sugar percentages for the same type of beverages.

Your goods classification is important because it outlines your tax, reporting, and other legal obligations for the product. It also dictates which preferential trade agreements or special procedures you can benefit from.

Misclassification can lead to penalties, delays, or legal issues, making it crucial for you to have accurate goods classification.

The Customs Support Group provides goods classification services throughout Europe and beyond, helping you to understand your obligations around the globe.

Contact us to find out more.

Misclassifying goods can result in underpayment or overpayment of duties, delays at the border, penalties, or even seizure of goods. 

For your business, this can mean financial losses, disrupted supply chains, and reputational damage. Additionally, a misclassification can lead to legal liabilities if it results in non-compliance with import/export regulations or trade restrictions.

If the misclassification has been consistent for a long period of time, such as over a few years, an unexpected demand for underpaid duty can be a severe financial hit. It can also cause financial issues if you are contracted to provide goods to your customer for a period of time and it is now less viable because of increased tax.

For these reasons, it can be best to seek Binding Tariff Information (BTI) – also called Advanced Tariff Ruling (ATaR) in the UK – as this is legal confirmation of your goods classification which will protect your trade from misclassification claims.

The Customs Support Group provides goods classification throughout Europe and beyond, helping businesses like yours understand their obligations and safeguard themselves from unexpected costs.

Contact us to get started.

A product should only have one commodity code, and it is clear in many cases which code it should be. However, different varieties of the same product or different intended uses can cause interpretation errors when deciding which commodity code is correct.

When there are many possibilities, it is important to document the reasoning for a code being chosen in case of an audit. This is because the same item may attract different tax rates or other obligations with the changing of its classification.

Binding Tariff Information (BTI) is a useful tool for confirming your commodity code. It means that the classification of your goods has been signed off by the authorities, protecting you from penalties later.

The Customs Support Group provides help with goods classification throughout Europe.

Get in touch for more information. 

Yes, customs authorities have the right to challenge a goods classification and can determine that it is incorrect. This can lead to penalties, a demand for underpaid duties, or additional audits of your processes if it is viewed as willful misclassification.

Obtaining Binding Tariff Information (BTI) can protect your organisation from claims of misclassification, and provide peace of mind that your duty payments are correct.

Customs Support Group provides goods classification throughout Europe and beyond. Our experts will help you to make a decision on your commodity codes, and assist you with obtaining BTI if it is recommended. Contact us today to get started on yours.