The EU Combined Nomenclature: Customs Classification Demystified
- Arne Mielken
- Nov 3, 2023
- 2 min read
Discover the EU Combined Nomenclature for Customs Classification. Unlock the secrets of goods classification with the latest blog post - visit now!
The Combined Nomenclature (CN) is a comprehensive system that has been specifically designed to classify goods. It serves the dual purpose of fulfilling the criteria of the Common Customs Tariff as well as the European Union's external trade statistics. The CN, which stands for Combined Nomenclature, is also utilised in the compilation of intra-European Union trade statistics.
Access the latest version (2024) here: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202302364
The EU-specific subdivisions of the Harmonised System nomenclature, which is developed by the World Customs Organisation, represent a significant advancement in terms of specificity and detail. This is a comprehensive and organised compilation of various commodities that are commonly utilised by the majority of trading nations, and are also employed as a basis for international trade negotiations.
How does it work?
The European Union utilises this classification system to categorise a wide range of goods during their declaration process to customs.
The CN subheading, as mentioned in the declarations for imported and exported goods, plays a crucial role in determining two key aspects. Firstly, it helps in identifying the specific rate of customs duty that is applicable to the goods being imported or exported. Secondly, it determines how the goods are treated for statistical purposes and also for other policies within the European Union.
What's in the nomenclature?
The combined nomenclature includes:
preliminary provisions (general rules for classification, rules related to duties or to nomenclatures, etc.)
descriptions of the goods
additional section/chapter notes and footnotes relating to CN subdivisions
conventional duty rates – the EU tariff commitments in the WTO, and some EU autonomous duties
supplementary units
a set of tariff-related annexes (agriculture, chemistry, etc.) and a special coding system (Chapters 98 and 99).
Each subdivision of the nomenclature is known as a ‘CN code’. It has an 8-digit code number followed by a description and a duty rate, and as the case may be, a supplementary unit.
Example:
Latest version
Every year, Annex I to the basic CN Regulation, which is Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff, undergoes updates and is subsequently published as a separate Regulation in the Official Journal of the European Union.
These updates consider any modifications that have been agreed upon internationally, either at the World Customs Organisation (WCO) in relation to the Harmonised System (HS) nomenclature, or within the World Trade Organisation (WTO) in relation to conventional duty rates.
Additional changes may be necessary to accurately reflect the ongoing developments in various areas such as commercial policy, technological advancements, or statistical requirements.
Access the latest version here: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202302364
Interpreting the EU nomenclature
You have the option to utilise the explanatory notes, which provide detailed explanations regarding the specific range of tariff headings. The Explanatory Notes, which provide detailed explanations and interpretations, are established by the Council Regulation (EEC) No 2658/87. This regulation specifically focuses on the tariff and statistical nomenclature, as well as the Common Customs Tariff:
Access EU Explanatory Notes of the EU Common Customs Tariff: Stay up-to-date with the latest amendments to the EU Explanatory Notes on Customs Classification. Access the CN details and more on our blog https://www.customsmanager.info/post/customs-classification-eu-explanatory-notes
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