Every product that crosses a customs border has a numeric code. Customs uses it to set the duty, to see whether a prohibition or quota applies, and to decide which licences the consignment needs. The code has three layers: a worldwide one, an EU one and a layer of EU measures.

In brief

  • The first six digits are the Harmonized System (HS) of the World Customs Organization. Most of the world uses it.
  • The EU adds two digits of the Combined Nomenclature (CN) and two more digits of TARIC.
  • The ten-digit TARIC code determines the duty, anti-dumping measures, quotas, prohibitions and licences required.
  • Binding Tariff Information (BTI) is valid for three years throughout the EU.

How the code is built

  • HS, 6 digits. Chapter (2 digits), heading (4), subheading (6). It is amended as a rule every five years.
  • CN, 8 digits. The EU nomenclature under Regulation (EEC) No 2658/87. A new version is published every year and applies from 1 January.
  • TARIC, 10 digits. The Commission's database, which attaches all EU measures to the code: duties, suspensions, quotas, anti-dumping, prohibitions and restrictions.
  • An export declaration carries the eight-digit CN code, an import declaration the ten-digit TARIC code.

How goods are classified

  • By the general rules for the interpretation of the Combined Nomenclature, the wording of the headings and the notes to sections and chapters.
  • The explanatory notes to the HS and the CN help with classification but are not legally binding.
  • Disputed cases are settled by a Commission regulation classifying the specific goods.

Binding Tariff Information (BTI)

  • It is issued by a customs authority on an application lodged through the EU Customs Trader Portal — in the Member State where the applicant is established or where the information is to be used.
  • Each type of goods needs its own application, with a detailed description and, where relevant, samples and images.
  • The decision is valid for three years and binds the customs authorities of all Member States and the holder (Article 33 of the Union Customs Code).
  • The customs authority decides as a rule within 120 days of accepting the application (Article 22).
  • Issued decisions are public in the EBTI database, without confidential data.

What is often confused

  • The code used by a supplier in another country matches only in the first six digits. The remaining digits are specific to each customs territory.
  • A BTI covers only goods that match the description in the decision, and can be used only for customs formalities completed after its validity begins.
  • A decision based on inaccurate or incomplete information is annulled with retroactive effect.