EU: Common Customs Tariff 2024 published!
The EU 2024 customs classification changes have been published. Learn about the changes and ensure accurate product classification. Book yourself on our 2024 EU Customs Update Course in December 2024
On 31 October 2024, the EU has published the final version of the 2024 commodity code changes. Businesses have two months to get ready! HS, CN, or HTS, or Tariff codes are internationally recognized codes used to identify products and ensure correct payment of duties, VAT, and taxes.
EU Customs Update 2024 - December 2023
Our 2024 EU Customs Update takes place in December 2023. We will discuss the latest changes to customs classification. Book yourself a spot on www.customsmanager.org/events.
What changes in 2024
The European Union has recently released the new Combined Nomenclature (CN) 2024, which is specified under Regulation 2023/2364. The latest update has introduced 23 new CN codes and deleted 15 existing ones. Moreover, the conventional duty rates for specific products like video recording or reproducing apparatus, certain radio receivers for use in motor vehicles, and others have been eliminated.
What are commodity codes?
Governments and customs use commodity codes to track goods and ensure compliance with rules and regulations. They are typically composed of six harmonized digits, although for export, these can be made up of 8, 10 or even 14 digits.
Commodity codes serve several purposes, including the identification of the product, determination of third-country and preferential duty rates, and collection of statistical data. They are also used to inform trade policies and to enforce controls such as quotas, anti-dumping duties, and subsidies.
Top Tip: Access the 2024 EU Customs Classification Changes (final) here:
https://www.customsmanager.info/post/eu-2024-combined-nomenclature-for-customs-classification
A global construct
Commodity codes are based on the Harmonized System (HS Codes) of the World Customs Organization. This system defines the first 6 digits and reviews them every six years. It covers approximately 98% of World Trade and is used in over 180 countries.
The HS is an internationally standardized system of description and numbers that forms the first part of the 10-digit classification code when importing goods into most countries and the 8-digit classification code when exporting from most countries. Customs authorities worldwide use it to identify products when calculating tariffs and taxes, as well as for gathering statistics.
The World Customs Organization administers the HS, which is updated every 5 years. It serves as the foundation for every country's import and export classification systems.
The products are categorized into three main levels:
- Chapters (2-digit level or first 2 digits of the HS)
- Headings (4-digit level of the HS)
- Subheadings (6-digit level of the HS)
Tip: Why not book yourself onto a customs classificaiton training 1/2 day workshop to learn the ins and outs of customs classification? Book on www.customsmanager.org/events
Example of how the HS is structured
Household dishwashers are classified under:
Chapter 84 - Nuclear reactors, boilers, machinery and mechanical appliances
Heading 8422 - Dishwashing machines; machinery for cleaning or drying bottles or other containers…
Subheading 842211 - Household dishwashing machines
A nomenclature
Commodity codes follow a logical system called Nomenclature, which arranges numbers and codes in a way that makes sense. Rules are necessary to determine the order of these numbers and codes so that all goods in the world can be classified. Questions that need to be answered include: What should be the order of product listings? What should go before what, and based on what logic?
In the end, it was decided that the classification of the world's entire product would begin with natural organic items, which would be classified lower in the numbering system. Technical and manufactured items, which are of higher sophistication due to the level of processing, would be classified higher. The higher the level of sophistication, the smaller the number of numbers it has. Conversely, the more granular the classification, the more numbers it has. For instance, live animals are first (the lowest form of production), while the Mona Lisa (art) is last (or close to last) - the most sophisticated form of production.
Overall, metals are classified before machines and fabric before clothes.
Are your codes correct?
Businesses have a legal obligation to classify their products according to the rules of the HS system and national requirements. In the world of the UK customs agency:
"If you intend to move goods to and from the UK it’s essential that they’re classified in order to identify what duties and controls apply and ensure a correct customs declaration. Whether or not you have an agent who handles customs entries on your behalf, you have a legal responsibility to ensure the correct classification is applied. Incorrect classification can lead to delays in clearing goods, overpayment of duty and possible penalties"
HMRC
If you are not prepared, your goods may get stuck.
Using an outdated tariff code can have significant consequences. If the code is no longer valid, your goods may not be cleared and could get stuck in customs. As a result, you may experience delays in reaching your customers. Additionally, providing an incorrect code can lead to underpaying or overpaying for duty. Worst of all, if you declare the wrong type of goods, such as importing metals but declaring chocolate, any protective measures taken by governments may be potentially wrong. This could lead to accusations of fraud, so it's important to make sure you provide the correct information.
What can a business do to get ready for the 2024 changes?
It is extremely important to make the most of the remaining time to understand which products are undergoing changes and how they can impact your business. To evaluate the accuracy of your codes in general, you should use the changes expected to occur by 2024. Take the time to review all of your codes and ensure that they are still correct. If you are unsure about any of them, you should seek assistance to ensure that you get them right every time.
Our customs managers are experts in classification and can assist you with individual and mass classification. To discuss your requirements, please do not hesitate to contact us. We would be delighted to help you.
What is the importance of Customs Classification in Customs and global Trade ?
When transporting goods across borders, it is crucial to determine the customs tariff positions accurately. This is a fundamental requirement for submitting a correct customs declaration. Applying an incorrect tariff number can result in increased import duties, not just for your company but also in terms of bans and restrictions, obtaining licences and permits, and compliance with reporting and documentation requirements. Do you and your team feel confident in classifying the tariff of your goods? Is your knowledge up-to-date? Our online collection can help accurately determine all customs tariff numbers. See all updates here: https://www.customsmanager.info/all-news/categories/customs-classification
TIP: Please make sure to regularly visit our collection of updates and bookmark this link if you are interested in this topic. It is filled with the latest decisions and updates.
More information & links
Access the 2024 EU Customs Classification Changes
https://www.customsmanager.info/post/eu-2024-combined-nomenclature-for-customs-classification
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