For customs clearance, a commodity code must be declared for all goods to be imported or exported. The commodity code can also be called TARIC code. The commodity code determines the duty rates on the goods as well as restrictions and prohibitions, among other things.
Using the right commodity code is also important for the company. By using it, the company can price the imported product right and avoid any back taxes.
The structure of the commodity code:
- import: 10 digits + possible 4-digit additional codes
- export and statistics on intra-EU trade (Intrastat): 8 digits
- goods subject to exprt refunds: 12 digits (commodity code 8 digits and additional code 4 digits).