Understanding Customs Tariff Codes: HS, CN, Commodity Number
Eight digits for imports, eleven for statistics: how HS codes, commodity numbers, and the Combined Nomenclature are structured, and where to find the right number.
When an export declaration contains the wrong commodity number, there are consequences — ranging from a query by the principal customs office to a fine for serious mis-classification. At the same time, tariff classification is one of the tasks about which exporters are most frequently uncertain in everyday practice. With good reason: the system is complex, and the boundaries between similar headings are often far from intuitive.
Why the right number matters
The commodity number is more than a bureaucratic mandatory field. It controls:
- Duty rates on importation in the country of destination: Using the wrong number risks the consignee in the third country paying the wrong duty rate — which can lead to back-assessments and reputational damage.
- Export prohibitions and licensing requirements: Whether a good qualifies as a dual-use item and requires a licence depends to a significant degree on the commodity number and the classification index in the Dual-Use Regulation.
- Trade statistics and origin: Germany’s foreign trade statistics are compiled on the basis of commodity numbers. Incorrect data distorts the statistics and can attract attention during audits.
- Preferential origin: For many free trade agreements, whether a good qualifies for preferential origin depends on the commodity number (the list rules in the relevant agreement).
How commodity numbers are structured
The system is hierarchical. There are several levels:
HS code (Harmonised System): The foundation is the Harmonised System of the World Customs Organization (WCO). It consists of six digits and is internationally uniform — meaning a commodity number can in principle be understood worldwide. The first two digits identify the chapter (e.g. 84 for nuclear reactors, boilers, machinery), the next two the heading, and the final two the subheading.
Combined Nomenclature (CN): The EU extends the HS code to eight digits. The Combined Nomenclature is binding for all EU Member States and determines the duty rates in the EU tariff as well as the foreign trade statistics. The CN number is the commodity number to be declared in EU export declarations.
TARIC (Integrated Tariff of the EU): For imports into the EU there is also a ten-digit TARIC subheading. This contains additional trade policy measures (anti-dumping duties, tariff quotas, licences). For exports from the EU, the eight-digit CN number is the relevant reference.
Statistical commodity classification (11 digits): For German foreign trade statistics, the CN number is extended by further digits. In ATLAS export declarations, the eight-digit commodity number is generally entered; the system adds the statistical code automatically or requests it separately where needed.
Where to find the right number
The first port of call for commodity number research is the EZT-Online portal of the German customs administration: auskunft.ezt-online.de. The complete EU customs tariff is available there — with explanatory notes, annotations to chapters and sections, and the relevant trade policy measures.
Approach when searching:
- Describe the goods: material, function, intended use, manufacturing process.
- Identify the chapter: under which section of the customs tariff is the good most appropriately classified?
- Narrow down the heading and subheading: the explanatory notes to the chapters help to distinguish between similar headings.
- Observe the notes: each chapter and section has binding notes that define the scope — these take precedence over the descriptions of individual headings.
The European Commission also offers the TARIC portal, which is likewise freely accessible.
Common classification errors
Classifying by use rather than by objective characteristics: Classification is based in principle on the objective characteristics of the goods at the time of the customs declaration — not on their intended use. A plastic component that is used as a machine part may nonetheless be classified under “articles of plastics” rather than “parts of machines” for tariff purposes.
Mixed goods and sets: Where a consignment includes multiple types of goods (e.g. a device with accessories), special classification rules apply (the General Rules for the Interpretation of the HS). It is incorrect simply to take the main item and ignore the rest.
Outdated numbers: The CN is updated every year on 1 January. Anyone working from a commodity number from the previous year without checking whether it is still valid risks an invalid declaration.
Confusing internal product names: What a company calls a “sensor” may be classifiable under “measuring instruments”, “electrical switches”, or “other electronic apparatus” in the customs tariff — depending on its function and operating principle.
Binding Tariff Information (BTI) for complex cases
For goods where the correct classification is unclear, there is the Binding Tariff Information (BTI). It is applied for at the Generalzolldirektion and is valid for three years. The BTI is legally binding — for the applicant and for the customs authorities.
Applying for a BTI is particularly worthwhile when:
- a good is exported regularly in larger quantities,
- the customs tariff contains several similar headings,
- the classification has implications for licensing requirements.
The procedure is free of charge but time-consuming — it typically takes several months. It is therefore not suitable for urgent one-off decisions.
The correct commodity number is the foundation of every export declaration. If you are uncertain about classification, we check it for you as part of our service — further details on the Export Declaration page.
For an overview of the complete export process, we recommend our article: What Is an ABD?.