Tariff species / Tariff classification
Operation consisting of assigning a precise HS/TARIC code to a good, determining the applicable duties and regulations.
Tariff species / Tariff classification
Tariff classification (or determination of the tariff type) is the operation which consists of assigning to a good the correct code in the Harmonized System, the Combined Nomenclature and the TARIC. This is the first element of the “customs trilogy” (species, origin, value).
Importance
The tariff classification determines the applicable customs duty rate, the commercial policy measures (anti-dumping, quotas), the applicable regulations (standards, licenses, prohibitions), the specific rules of origin to be applied and any excise duties.
Methodology
Classification is carried out by applying the General Rules of Interpretation (GIR) of the HS, by consulting the Section and Chapter Notes, the HS Explanatory Notes (NESH), the WCO Classification Notices and the CN Explanatory Notes.
Common errors
Classification errors are the primary cause of customs adjustments. Multi-component products, assortments, innovative products and products on the border of two positions are the most problematic.
Security
Binding Tariff Information (RTC) is the legal tool to secure a classification for 3 years throughout the EU.