HS Code

The HS code, sometimes also called a commodity code or HS tariff code, is used to determine:

• applicable customs duties
• VAT calculation
• licensing requirements
• possible additional inspections or regulatory controls

Because of this, the HS code plays a crucial role in the customs clearance process.

In most cases, the HS code is initially provided by the sender – the manufacturer, supplier, or exporter.

This is because the sender usually knows the product best, including:

• materials and composition
• technical characteristics
• function and intended use
• manufacturing specifications

HS code classification is based not on the product’s commercial name but on its actual characteristics and function.
Remember! Customs authorities assess the real nature of the goods rather than just the code provided in the documentation.

However, in practice, the situation is more complex.

Importers cannot always rely solely on the HS code listed on the invoice.
If incorrect information is declared, the importer may also be held responsible.

An HS code is not assigned randomly or based on a marketing name.
Proper HS tariff classification is determined using several key criteria that evaluate the true nature of the goods.

Product Function

The primary factor in classification is what the product does and what it is intended for. The marketing name of a product is not decisive.

Technical Characteristics

Power, size, construction, mechanism and components often determine the appropriate classification category.

Material and Composition

The material of a product – such as plastic, steel, textile, or a combination of materials – can significantly affect the HS code classification.

Product Condition

It is important to consider whether the goods are finished, unfinished, disassembled, or supplied as a set, as these factors may influence the HS code classification.

The HS code is used in customs declarations and trade documentation to classify goods in international trade.

However, it plays a particularly important role in import declarations, as the HS code determines the applicable customs duties, VAT calculation and possible regulatory requirements.
Therefore, before submitting an import declaration, it is advisable to verify the HS code, especially for new or technically complex products, because incorrect classification may lead to delays, additional inspections or recalculated duties

In the European Union, HS code verification is typically carried out using the TARIC system, which provides information about applicable customs duties and additional regulatory requirements.

The verification process usually includes several consecutive steps.

Accurate Product Description

HS code classification begins with detailed information about the product, including:

• material
• function
• technical specifications
• intended use

Without this information, accurate HS code classification is not possible.

If a Product Matches Multiple Classification Positions

If a product could fall under several possible classifications, interpretation rules are applied to determine the dominant function or characteristic of the goods.

Most classification mistakes occur at this stage – not during the search itself, but during the interpretation of the classification rules.

Searching in the TARIC System

The next step is performing a search in the TARIC database, where relevant chapters and classification positions are reviewed.

It is not enough to select the first result that appears.
The product characteristics must be carefully compared with the legal wording of the classification position to ensure that the correct HS code is selected.

Contact our customs brokers

If the classification is not entirely clear, or you want to make sure the HS code is correct before submitting your declaration, our customs brokers will help you assess the situation and reduce risk.