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HS and CN codes: how to classify goods for EU import

The tariff code decides the duty rate, whether a licence or certificate is needed, which VAT rate may apply and sometimes whether the goods can be imported at all. A wrong code means back-duty with interest, goods held at the border or lost preferences. Here is how HS, CN and TARIC codes fit together and how to work out the right code yourself.

By Hiram Trade Editorial Desk

Published

6 min read

Three levels: HS, CN, TARIC

SystemDigitsMaintained byUsed for
HS (Harmonized System)6World Customs Organization (WCO)common basis for tariffs and statistics in more than 200 economies
CN (Combined Nomenclature)8EU, Council Regulation (EEC) No 2658/87EU duty rates, trade statistics, many tax rules
TARIC10European CommissionEU measures: preferences, suspensions, quotas, anti-dumping duties, prohibitions and restrictions

The first six digits are shared almost worldwide. A Philippine exporter and a Polish importer should agree on the same six-digit HS subheading even if the national digits after that differ. The current edition is HS 2022. The CN is updated every year, and each new version applies from 1 January.

Code structure, using coconut oil as an example:

  • Chapter 15: animal, vegetable or microbial fats and oils;
  • Heading 1513: coconut (copra), palm kernel or babassu oil and their fractions;
  • Subheading 1513 11: crude coconut oil;
  • Subheading 1513 19: other coconut oil, for example refined.

CN and TARIC split these further, for instance by intended use or package size. Check the current breakdown in TARIC.

Classifying step by step

  1. Describe the goods technically: composition, state (raw, processed), function, packing. A trade name is not enough.
  2. Find the chapter and heading: use the heading texts and the section and chapter notes. Under the General Interpretative Rules (GIR), classification is determined first by the terms of the headings and the notes, not by section titles.
  3. Apply the GIRs in order: rules 1 to 6 cover incomplete goods, mixtures, sets and packing. Do not jump to rule 3 if rule 1 already gives an answer.
  4. Go down to the subheading: compare only subheadings at the same level.
  5. Read the explanatory notes: the WCO's HS Explanatory Notes and the Commission's CN Explanatory Notes clarify what each heading covers.
  6. Search EBTI: see how EU customs authorities classified similar goods in issued BTI decisions.
  7. Check TARIC for the country of origin: duty rate, preferences, required documents and any restrictions.

Why the code matters

  • Duty: both the standard and preferential rates depend on the code, and neighbouring codes can differ considerably.
  • Preferences: rules of origin in trade agreements and the GSP are defined per code. The same product can meet the rule under one heading and fail under another.
  • Prohibitions and restrictions: licences, health certificates, plant health checks, dual-use controls and sanctions are all attached to codes.
  • Trade defence: anti-dumping and countervailing duties apply to specific TARIC codes and origins.
  • VAT and excise: some Member States, Poland among them, link VAT rates for goods to CN classification, and excise goods are defined by CN codes.
  • Statistics: intra-EU trade reporting (Intrastat) also uses CN codes.

Binding Tariff Information (BTI)

If classification is uncertain and the product matters to your business, apply for Binding Tariff Information. A BTI decision:

  • is free of charge;
  • binds the holder and customs authorities in every EU Member State;
  • is generally valid for 3 years;
  • is published in the public EBTI database.

A BTI based on inaccurate or incomplete information will be annulled, so the application must be precise: technical data sheet, composition, photos and, if needed, a sample.

In Poland there is a separate instrument for VAT: the binding rate information (WIS), issued by the National Tax Information office. It sets out the CN classification and the applicable VAT rate.

Who is responsible for the code

The declarant, usually the importer or its customs representative, is responsible for the accuracy of the customs declaration. The code on the supplier's invoice is a hint, not a decision. Suppliers often quote their own national tariff code, whose 8- and 10-digit levels may mean something different from the EU CN.

Good practice: agree the 6-digit HS code with the supplier at the RFQ stage, and confirm the CN and TARIC codes with your customs broker before the first shipment.

For Philippine exporters, getting this right early helps the buyer check whether your goods qualify for GSP+ preferences, which are defined by code.

Common mistakes

  • Classifying by trade name rather than composition and function.
  • Copying the code from the supplier's invoice without checking.
  • Ignoring chapter notes that exclude the product from a heading.
  • Not checking TARIC measures for the specific country of origin.
  • Not reviewing codes after the annual CN update.

The code in day-to-day trading

The HS code is also useful when searching for suppliers and comparing quotes, because it confirms everyone is pricing the same product. On Hiram, duty is one of the components of the landed cost comparison, so it helps to know the code before comparing quotes. See our guide to landed cost for the other components.

Checklist

  • Technical description (composition, state, function, packing).
  • 6-digit HS code agreed with the supplier.
  • 8-digit CN and 10-digit TARIC code confirmed with the customs broker.
  • TARIC measures checked for the country of origin.
  • If in doubt: apply for BTI (and, in Poland, WIS for VAT).
  • Annual code review after the CN update.

To find suppliers for a specific product, browse offers on Hiram.

Sources

This article is for information only and is not legal, tax or customs advice. Rules and rates change: check the current official sources or consult an adviser before you decide.

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