To ensure smooth customs clearance, goods must generally be assigned to specific commodity codes (customs tariff codes) before import or export. But what is the correct procedure for classifying goods? What do the commodity codes mean, and where can I find the right code? In this guide, you’ll find information on the applicable regulations, tips for searching for codes, practical case studies, and an overview of available resources.
Basics: Understanding tariff classification of goods
What is a commodity code / customs tariff code?
A customs tariff code (or commodity code) is an eight- to eleven-digit numerical code used to uniquely classify goods in international trade. It serves as the basis for customs declarations and determines, among other things, the customs duty rate, import duties, and any applicable prohibitions, restrictions, or licensing requirements.
When do you need a commodity’s tariff code?
The assignment of a customs tariff number is essential for every customs declaration, as well as for the associated determination of the customs tariff (often referred to as “tariff classification”). However, tariff codes—commonly referred to as commodity codes or customs codes—are used for various purposes. As a rule, they serve to determine …
- … foreign trade statistics from the Federal Statistical Office
- … import and export duties
- … excise taxes
- … export refunds
- … coding
- … licensing requirements
- … additional duties
Tariff classification is also required to prove the origin of a particular good and to validate preferential trade rights.
How are commodity codes structured?
Generally, the tariff code consists of eight digits for export declarations and eleven digits for import declarations.
Each code is divided into different sections, each of which—depending on the digit—has a different scope of application: the Harmonized System of the World Customs Organization (digits 1–6), the Combined Nomenclature (digits 7–8), the TARIC (Integrated Tariff of the European Community) (digits 9–10), and finally the national number (digit 11).
An overview of the structure of a code number (only in german):
The subheadings of the 6-digit Harmonized System (also known as the HS code) apply in all member states of the World Trade Organization (WTO). Further code subdivisions are subject to national variations.
When determining commodity code numbers in practice, a distinction is still made between general terms (chapters/headings) and product-specific details (subheadings).
Where can I find the correct customs tariff number?
You can search for the tariff code online or request information (non-binding or binding)—depending on the situation:
Searching for tariff codes online: EZT-Online & alternatives
When? For quick, independent research in everyday situations involving clearly identifiable goods
Cost? Free
Who searches? You
Limitations? Results are non-binding and depend on your own expertise
How? If you’d like to look up the customs tariff number online on your own, you have several options, including:
- Use the electronic customs tariff on the customs website (EZT Online) and fill out the online search form with the relevant data. Alternatively, you can consult the keyword index. To do so, navigate through the tool as follows: Imports / Exports → Classification → Keyword Index
- Visit zolltarifnummern.de and enter the description of the goods in the search field to get guidance.
- Use the Federal Statistical Office’s commodity directory search engine to look up a description of the goods and get guidance on the appropriate commodity codes.
Non-Binding Customs Tariff Information
You can obtain non-binding customs tariff information from the customs administration and receive further details on applicable commodity codes.
When? If you are unsure after conducting your own online research, or if you need a preliminary assessment of the expected sales tax rate
Cost? Free
Who provides it? Customs
Limitations? The result is not legally binding
How? Non-binding tariff information is provided by the Central Information Office at the General Customs Directorate – Directorate II.
Mailing address:
General Customs Directorate
Central Information Office
P.O. Box 10 07 61
01077 Dresden
Information for individuals:
Phone: +49 228 303-26020
Email: info.privat@zoll.de
Information for businesses:
Phone: +49 228 303-26030
Email: info.gewerblich@zoll.de
Information in English:
Phone: +49 228 303-26040
Email: enquiries.english@zoll.de
Binding Tariff Information (vZTA)
When? Complex cases (e.g., new products), for legal certainty
Costs? Free of charge or subject to a fee notice, depending on the case
Who issues it? Customs (Main Customs Office)
Restrictions? The ruling applies only to a single commodity, is valid for a maximum of three years, and is not retroactive
Procedure? To obtain a binding customs tariff ruling (vZTA), a written (electronic) application must generally be submitted. Further information and the application form can be found on the Customs website for the vZTA.
What should you keep in mind when classifying goods?
The General Rules for the Interpretation of the Combined Nomenclature are particularly important. These rules form the basis for the legal regulations governing the classification of goods. You can find these rules in the online customs tariff information system under the following path: Imports / Exports → Classification → Commodity Nomenclature → General Rules
Below, we have listed some important points regarding commodity classification for you:
General Rules for Tariff Classification
- As a general rule, every good must be “classifiable,” meaning it must be listed in the (electronic) customs tariff.
- The list of goods is structured as follows: The section on raw materials always comes first, followed by the processed products and their codes. The principle is “purpose before material.” When searching the tariff for a suitable number for a good, its intended use takes precedence over the material used in code assignment. Example: A metal car is to be classified as a vehicle and not as “other metal products.” Therefore, look up the commodity codes for vehicles, not the codes for metal products.
- Classification under “other goods” should only be done after excluding the preceding (sub)headings.
- When classifying, it is preferable to use the specific name of the good as listed in the commodity list.
- Before you work through the relevant chapter in search of the appropriate code for your goods, you should be sure to review the respective notes and restrictions at the beginning of the chapter. These provide information on whether certain goods are excluded from this chapter.
- Additional guidance on tariff classification is provided at the heading level. Here, you can access further information on the HS heading. To do so, click the “Explanatory Notes” link on EZT-Online. Specifically, this additional information specifies which goods are classified under this heading.
- These two points must be taken into account when classifying goods! They may necessitate changes to the tariff codes if the goods were initially classified based solely on the actual contents of the chapter.
Example: Chapter 48 covers goods made of paper (e.g., paper stationery). However, the notes to Chapter 48, No. 2, letter p), exclude toys classified under Chapter 95 from this classification. Playing cards, such as Skat cards, therefore do not fall under Chapter 48 but are assigned tariff code 9504 4000 (also due to their specific mention by name). The Explanatory Notes to the Harmonized System (HS) for heading 9504, No. 11), also specifically mention “card games of all kinds […]” by name.
Special Cases: Which tariff code should I choose for … ?
1) Assortments of Goods
Assortments of goods are classified under the heading that represents the main component of the assortment. For example, if a hair dryer is sold together with chocolate, the hair dryer constitutes the main component of the set of goods. It is therefore classified under HS subheading 8516 3100.
However, if the hair dryer (HS heading 8516 3100) is to be sold together with a hair straightener (8516 3200) as a product bundle (for example, as part of a promotion), classification must be made under the “last-mentioned heading” in accordance with General Rule No. 3(c).
2) New Goods
Classifying new products that have been newly developed or invented—and are therefore not yet specifically listed by name in the customs tariff—can also be problematic. In such cases, the notes and explanatory notes are often of only limited help in finding the correct tariff code. In such cases, it is advisable to regularly obtain a binding tariff ruling (vZTA).
An illustrative example from the past:
A few years ago, a binding tariff ruling concluded the following regarding what was then a new pulsed-light hair removal device: While electric razors, hair clippers, and epilators are classified under heading 8510 because they are specifically named, pulsed-light hair removal devices fall under heading 8543 7090 as “other machines, appliances, and devices, […] not elsewhere specified or included.”
(Source: VZTA DE24125/13-1 issued by the Hanover Customs Office, valid through July 6, 2020)
3) Wrappings and Packaging
Packaging and containers used for the transport of goods are classified under the same tariff heading as the goods being declared, provided that the packaging does not constitute the actual goods. This means: The packaging of the goods is assigned the same tariff number. In export declarations, it is described in more detail in the package details (e.g., CT – cardboard box).
4) Missing product information
Another problem that can arise when assigning tariff headings comes into play when different chapters of the Harmonized System are even under consideration. In such cases, it is important to have the exact information and data about the product on hand. Ideally, this allows for the exclusion of classification under certain chapters.
Example:
This is the case, for example, with so-called VR glasses, which consist of a plastic frame, have two displays—one for each eye—and are used to display three-dimensional games and movies. Possible headings here would be
- 3926 Other articles of plastic
- 9504 Video game consoles and equipment […]
- 8528 Monitors and projectors
- 9004 Spectacles […] and similar articles
Chapter 39 can be ruled out, as the intended use takes precedence over the material composition in this case.
Chapter 85 cannot be ruled out. Specifically, the Harmonized System does not explicitly state in its Explanatory Notes to Chapter 85 A), paragraphs 1 and 2, that VR headsets must be excluded from Chapter 85.
Chapter 95 also cannot be immediately excluded. Although VR glasses are not video game consoles, parts and accessories for video game consoles may be classified under this chapter. This is specified in the Explanatory Notes to the Harmonized System (HS), sentence 2.
HS heading 9004, on the other hand, covers all spectacles and similar articles. However, VR systems are not excluded here either in the Explanatory Notes to the Harmonized System (HS). Paragraph 4 of the Explanatory Notes classifies “polarized glasses […] for viewing three-dimensional films” under this HS heading. However, this likely applies only to traditional 3D glasses, which have lenses of different colors or contain color-neutral filters that produce a 3D effect through corresponding technology (which is not contained within the glasses themselves).
The Harmonized System (HS) Notes for heading 9004 define a “virtual reality headset (VR headset)” as one designed to be connected to and used with a specific type of mobile phone. The Harmonized System (HS) Explanatory Notes precisely define the technical characteristics and specify that a mobile phone is absolutely necessary for operation.
The Harmonized System (HS) Explanatory Notes for subheading 9504 50 No. 3 define a “virtual reality headset” as follows: […] which resembles protective goggles, contains sensors, video display modules […] and two magnifying lenses that enable the user to see a spatial view (3D view) of the screen of the video display module.”
The example of VR glasses illustrates how difficult it can be to assign the correct tariff codes to a product so that customs clearance in international trade can proceed smoothly: A product description alone—such as “3D headset” or “VR system”—is not sufficient for accurate tariff classification in this case. This is because the responsible customs officer must be familiar with the exact technical specifications in order to rule out certain tariff chapters and, consequently, specific commodity codes. In the case of VR headsets, for example, it is essential to know whether the 3D display is provided via a smartphone (Heading 9004) or whether the headset itself displays the images (Heading 9504), as each case must be treated differently.
