What is a commodity code?
A commodity code is a sequence of numbers made up of six, eight or ten digits.
The commodity code determines
- the customs duties and other charges levied on the goods
- the preferential treatments that may apply to their import, and
- the restrictions and prohibitions that may apply to the import, export or transit of the goods.
Six-digit commodity codes are HS codes. They are used worldwide in monitoring trade volumes and applying international trade measures to goods. The HS nomenclature forms the basis for the 8-digit Combined Nomenclature and the 10-digit Taric Nomenclature.
Eight or ten-digit commodity codes are used in import and export declarations and in statistics declarations on internal trade between EU countries (Intrastat declarations).
Why do I need the commodity code?
You need the commodity code to be able to lodge customs declarations, and to find out if there are any restrictions that apply to the goods and what the import costs are.
Be sure to have the right commodity code so that you can set the right price for your products and avoid any back taxes. The period of subsequent taxation is three years. If the commodity code is incorrect, the importer may have to pay the unlevied taxes retroactively.
The commodity code affects all the import taxes levied on the goods.