What is a commodity code?

What is a commodity code? A commodity code is a ten-digit number allocated to goods to classify imports from outside the EU. Every item will fall under a commodity code – and this commodity code dictates your duty rating, as well as alerts you to any import or export restrictions.

Also, what is a commodity code used for?

Commodity codes are used to classify goods for import and export within the European Union (EU) or outside. The aim of classification is to pay the right tax and duty and follow regulations.

One may also ask, what is an Intrastat Commodity Code? The commodity code - which you need to identify for all interaction with customs - is the most important data field on the Intrastat Supplementary Declaration (SD). Commodity codes for all goods are described in the Combined Nomenclature (CN) on which the Integrated Tariff of the UK is based.

Hereof, is Commodity Code same as HS Code?

2 Answers. Commodity Codes known as Schedule B Numbers are the product classification numbers used when in doing the Customs Export Declaration. Commodity Codes or HTS or HS codes are mainly depend on the basic commonly agreed numbering schemes maintained by World Customs Organization(WCO).

Do I need a commodity code?

When importing and exporting, you are responsible for providing the correct Commodity Codes for your goods. You'll need your commodity codes so you can: Complete declarations and other paperwork. Find out if there is any duty or VAT to pay.

How do I find a commodity code?

Commodity codes can be found on the Trade Tariff.

Your commodity code tells you:

The duty and VAT ratings you'll be charged for your goods.
If you can apply for a preferential duty rating (General System of Preference aka GSP)
Whether your product requires an import licence.
Whether anti-dumping duties apply.

How many commodity codes are there?

At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system. The HS comprises approximately 5,300 article/product descriptions that appear as headings and subheadings, arranged in 99 chapters, grouped in 21 sections. The six digits can be broken down into three parts.

How many digits is a tariff code?

A complete tariff code is no less than six digits and can be up to 10. The more digits in a tariff code string, the more specific the product it identifies. A string of less than six digits is considered a partial tariff code and represents a broad product category or chapter of products in the HS.

Are commodity codes universal?

Commodity Codes. Goods and services traded among countries are classified with one of two universal coding schemes: the Harmonized System (HS) or the SITC (Standard International Trade Classification).

What does a commodity code look like?

What is a commodity code? The code is an eight-digit number for exports outside the EU or goods moving within the EU, but is a ten-digit number for imports from outside the EU. Once you know the commodity code, you can look up other important information such as duty rates and any import or export restrictions.

What is a commodity for shipping?

When empty containers are shipped each unit is documented as a cargo and when goods are stored within, the contents are termed as containerised cargo. Commodity may be defined as a raw material or product that is traded, such as ores, grain, coffee etc. Commodity becomes Cargo when it enters the transportation realm.

What is commodity description duties and taxes?

Commodity descriptions and duties and taxes: provide an accurate description of your shipment contents. Duties and taxes, and other customs fees may be assessed based on the contents of your shipment. A consistent and detailed description of your shipment contents on all documents will help reduce customs delays.

How do you classify goods to customs?

Classification of goods

apply for an import or export licence.
find out if import or export restrictions apply.
issue a certificate of origin.
claim an export refund or similar.
determine whether or not a product is liable to excise duty.
find out if a reduced value-added tax rate applies (insofar as the CN is used as a basis of reference).

What is CN number?

“CN” means “combined nomenclature.” A CN code is a customs/tariff designation required in box 13 of export certificates for the EU. CN codes are published in the Official Journal of the European Union.

How is import duty calculated?

Example for calculating customs duty and import VAT:

The customs duty is 12 % of the value of the goods and the postage.
(€200 + €35) x 0.12 = 28.20 euros.
The amount of VAT is 24 % of the taxable amount for import VAT:
(€235 + €28.20) x 0.24 = 63.17 euros.

Is HS code same for all countries?

The World Customs Organization (WCO) has been administering 6 digits HS codes schedule. However, each country can modify by adding two digits or four digits as per their requirements without changing first six digits. In other words, first six digits of HS code (HTS code) are same in all countries.

What is HS code for customs?

The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. HS CODES are common for all countries upto 6 digits. The next 2/4 digits are country-specific.

What does HTS mean?

Harmonized Tariff Schedule

Who pays an import tariff?

Tariffs are a tax on imports. They are paid by U.S.-registered firms to U.S. customs for the goods they import into the United States. Importers often pass the costs of tariffs on to customers - manufacturers and consumers in the United States - by raising their prices.

What is customs 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.

Who needs an EORI number?

If your business is involved in the import or export of commercial goods to countries outside of the EU then you will require an EORI (Economic Operator Registration Identification) number, irrespective of the mode of transport being used to move your goods from one place to another.

What is third country duty?

Third-country duties are ordinary import duties. In principle, they are initially incurred for all goods imported into the European Union from non-Union countries. Third-country customs duties are therefore part of the import duties (customs duties, import turnover tax and other excise duties) that you have to pay.

What is a BTI ruling?

A Binding Tariff Information ( BTI ) decision is a written tariff classification of your goods. It's not a legal requirement, but it provides assurance that your goods have the correct commodity code and: is legally binding on all UK and EU customs administrations.

Who is responsible for HS codes?

The U.S. Customs and Border Protection is the only agency that administers the HTS at American ports of entry and also provides legally binding advice and rulings on matters concerning the classification of imports.