Every product that crosses a border needs a commodity code. It decides the duty you pay, whether a licence or certificate is needed, and which trade statistics the shipment counts towards. Get it wrong and you risk overpaying duty, underpaying and facing a back-dated demand, or goods held while customs asks questions.
This guide walks through how a trained classifier approaches a new product: the same method click2classify follows.
What a commodity code is
Commodity codes are built on the Harmonized System (HS), maintained by the World Customs Organization and used by more than 200 countries and economies. The first six digits are the same everywhere:
- Digits 1–2: the chapter, for example 61 “Articles of apparel and clothing accessories, knitted or crocheted”.
- Digits 3–4: the heading, for example 61.09 “T-shirts, singlets and other vests, knitted or crocheted”.
- Digits 5–6: the subheading, for example 6109.10 “Of cotton”.
Each country then adds its own digits. In the UK you declare an 8-digit code for exports and a 10-digit code for imports. The EU uses the 8-digit Combined Nomenclature and 10-digit TARIC codes, and the US uses 10-digit HTS codes for imports. Our guide to UK, EU and US codes explains the differences.
Step 1: Gather the facts about the product
Classification is decided by what the goods are, not by what they are called in your catalogue. Before you open the tariff, write down:
- What it is: a plain description, without brand or marketing names.
- What it is made of: the materials and, for textiles, the percentage composition.
- What it does or is for: its function and intended use.
- How it is presented: on its own, as part of a set, unassembled, or with packaging or a case.
- How it is made: for example knitted or woven, frozen or dried, cast or forged, where the tariff distinguishes them.
Tip
“Men’s knitted T-shirt, 100% cotton, crew neck” can be classified. “Summer tee” cannot. Vague descriptions are the most common cause of wrong codes.
Step 2: Find the section and chapter, then read the notes
The HS has 21 sections and 96 chapters, broadly ordered from raw materials to finished goods. Browse the HS code directory to find the chapter that looks right.
Then read the section and chapter notes. They are legally binding and frequently include or exclude specific goods. Chapter titles are only a guide: under the first General Rule of Interpretation, classification is decided by the wording of the headings and the notes.
Step 3: Choose the four-digit heading
Find the heading whose wording covers your product. If it fits more than one heading, or none exactly, work through the General Rules of Interpretation in order. They settle questions such as sets, mixtures, unfinished goods and packaging.
Step 4: Narrow down to the six-digit subheading
Within the heading, compare subheadings at the same level only (GRI 6). A one-dash subheading is compared with other one-dash subheadings, never with a two-dash line beneath a different parent.
Step 5: Pick the national commodity code
Look up the six-digit subheading in the tariff of the country you are importing into:
- UK: the UK Trade Tariff.
- EU: the European Commission’s TARIC database.
- US: the USITC Harmonized Tariff Schedule.
Choose the most specific line that describes the goods. Lines called “Other” are correct only when none of their siblings apply.
Step 6: Record your reasoning
Write down the code, the rules and notes you relied on, and the product facts behind them. If customs queries a declaration months later, a short record of why is far more useful than the code alone. click2classify stores its reasoning with every result for this reason.
Common mistakes
- Copying the supplier’s code. An exporter’s code may be for another country’s tariff, or simply wrong. You remain responsible for your declaration.
- Classifying by use when the tariff classifies by material, or the other way round. The headings and notes decide which applies.
- Ignoring the chapter notes, especially the exclusions.
- Treating “parts” loosely. Parts often have their own headings, and some are classified with the machine they belong to.
- Never reviewing codes. Tariffs change every year, and the HS itself is revised roughly every five years.
When to get a binding ruling
If the classification is genuinely uncertain and the duty or licensing impact is significant, ask the customs authority for a legally binding decision: an Advance Tariff Ruling from HMRC in the UK, Binding Tariff Information in the EU, or a binding ruling from US Customs and Border Protection.
Where click2classify helps
click2classify follows this method for you. It applies the General Rules of Interpretation, proposes a six-digit HS code with a confidence score and its reasoning, and resolves it to national commodity codes. Anything uncertain is flagged for review rather than passed through. Try the free lookup on one of your products.