Commodity Code Change

How Customs Support Consulting Can Help
Commodity change

On January 1st 2022 there will be significant changes in the harmonized system that can impact the commodity codes you are using
From a customs compliance point of view, it is recommended to check your commodity codes, Customs Support can take this load off your mind and perform these checks for you.

The importance of a correct customs classification

Determination of the customs classification for goods is not only important to ensure that goods are correctly classified according to the harmonized system that is used worldwide. Customs classification is also important because it is linked to:

  • Customs duties;
  • Import and export limitations;
  • Obligations regarding documents;
  • Licenses;
  • Commercial policy measures;
  • Security measures.

Using the incorrect classification of your goods can lead to delays in your customs declaration process or delays when the Customs Authorities detain a shipment at the border. It can also lead to higher duties and even significant fines. That is something that you or your customers don’t need, that is why it is important to check your commodity codes.

Customs classification explained

The complexity of correctly classifying goods is not helped by the many different names for different classifications, which partly overlap:

  • HTS-code (Harmonized Tariff System);
  • Commodity code;
  • HS-code (Harmonized system);
  • GS-code (Dutch: Geharmoniseerd Systeem);
  • Customs Code;
  • Statistical Code;
  • GN-code (Combined Nomenclature, Dutch: Gecombineerde Nomenclatuur);
  • Taric-code (European Union tariff code).

Once you determine the correct commodity code for a product, it is called a customs classification. Based on the rules of classification, goods are classified in the Harmonised Tariff System (HTS) / Combined Nomenclature (GN). This is a classification system that the World Customs Organization maintains. The HTS system is used almost everywhere in the world. The GN system is an expansion of the HTS system explicitly used in the European Union.