Importers and exporters who deal with the European Union customs regulations must be very familiar with all the burdens associated with cross-border transactions. Considering some important differences and peculiarities, we have listed 5 things you should know about the classification of goods in the EU. Check them out below.

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1- 8-digit Code System

Based on the Harmonised Commodity Description and Coding System (HS) developed by the World Customs Organization (WCO), the EU follows an 8-digit Code system pattern: chapter, heading and subheading.

2- Integrated Classification

The integrated classification system enables goods to be classified the same way in all EU 27 member states, once all countries follow the same database. It means that duty rates are the same for all goods contained in the Taric table for all EU member countries.

3- VAT Reduction Related

Countries in the EU choose specific goods to rate VAT aiming at protecting local industry/businesses according to their specific preferences. These goods may vary from country to country, however, the EU goods classification system returns the accurate VAT rate – whether standard or reduced – from the commodity codes depending on the country.

4- Integrated Tariff (TARIC)

The Integrated Tariff provides information on all trade policy and tariff measures applied to specific goods in the EU (e.g. temporary suspension of duties, antidumping duties, prohibited and restricted goods, etc).

5- Multilingual System

The EU’s Harmonized System has the commodity descriptions in all the official languages of the European Union. It means that if English is not your native language, you can search for a commodity code in any other official language available.

Do you still not how the EU harmonized system works? Subscribe to our blog and visit our website and ​LinkedIn page for more updates. You can also reach out to us by sending a message to ​info@mydutycollect.com. We will be delighted to hear from you.