The differences between HS, NC and TARIC customs codes: Everything you need to know!

Have you ever managed imports or exports for your company? You've probably come across these codes more than once: HS, NC, TARIC, wondering what they really mean. Once you've delved into Incoterms and grasped the nuances between 1PL, 2PL and 3PL, it's time to take a look at another key component of international trade: customs codes.

These codes are not just an additional element to be taken into account; they are mandatory for the passage of goods across borders. In this article, we'll explore the HS, NC and TARIC codes, their specific features, and how to apply them.

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What is the HS Code and how do I read it?

The HS Code, or "Harmonized System Code", is a standardized system developed by the World Customs Organization (WCO) to classify products traded worldwide. Its main aim is to facilitate trade by providing a uniform terminology for classifying goods.

The HS Code is structured as follows:

• The first two digits identify the product chapter, a broad categorization.
• The next two digits refine this classification by designating the product group within this chapter.
• Numbers 5 and 6 designate the specific product.

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How do I find my HS Code?

Finding the right HS Code for your product is essential to ensure smooth and efficient customs clearance.

Here are a few steps to follow:

• Consult the official WCO database: this is the most reliable source of information on HS codes.
• Use online product classification tools: Some sites offer services that help you determine the HS Code of your product based on its description, such as the Rita site.
• Ask a customs expert or broker: If you have any doubts, or if your product is very specific, it may be wise to consult a professional.

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Who should supply the HS Code?

It is usually the responsibility of the exporter or manufacturer to supply the HS Code when goods are shipped. However, the importer must also be well informed and ensure that the code provided is correct. After all, in the event of an error, it is often the importer who will have to deal with customs complications and any additional costs.

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What is the NC code and how does it differ from the HS Code?

The NC code, or "Combined Nomenclature", is a classification specific to the European Union. Although it is based on the structure of the HS system, it has been designed more specifically to meet the needs of EU customs, fiscal, commercial and statistical regulations.

NC code structure :

• International harmonization: The first six digits of the NC code are identical to the HS Code. This correspondence ensures harmonization with the international classification system, facilitating international trade.
• EU-specific subdivisions: After these first six digits, the CN code incorporates two further subdivisions (7th and 8th digits). These subdivisions enable a more detailed classification of products according to the specific needs of the EU.
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How do I find my NC code?

• Access the European Union's TARIC database: This is the official source for up-to-date information on the Combined Nomenclature and other aspects of customs duties applicable in the EU.
• Consult the website of the customs directorate general of your EU member country: These sites generally offer tools or databases to help you determine the CN code.
• Call in a European customs expert: To ensure accuracy and avoid complications, we recommend consulting a professional who specializes in EU customs operations.

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What is the TARIC code?

The TARIC code, which stands for "Integrated Tariff of the European Communities", is the most detailed and specific version of the customs codes used within the European Union. Like the NC code, TARIC is an extension of the HS Code. However, TARIC distinguishes itself by offering additional details linked to EU regulations and trade policies.

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The TARIC code is structured as follows:

• First 6 digits: from HS.
• 7th and 8th digits: specific to NC.
• 9th and 10th digits: introduced to reflect specific tariff measures, regulations or other EU trade policies.

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How do I find my TARIC code?

• Consult the European Commission's online TARIC database: This tool is the official and most up-to-date source for navigating the TARIC nomenclature, taking into account the latest trade policy updates.
• Contact your local customs authority: For more specific situations, it is sometimes advisable to consult your country's customs experts directly.
• Call on specialist consultants: For a detailed, customized analysis, external experts can offer invaluable assistance, especially for particularly complex products or situations.

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The importance of the TARIC code for your company

The right TARIC code ensures smooth customs transit within the EU. However, incorrect classification can have far more serious consequences than mere delays. In fact, coding errors can lead to :

• Financial penalties: Penalties or additional charges that can weigh heavily on the profitability of a transaction.
• Shipping delays: This can damage your company's reputation with your customers or partners.
• Customs disputes: These can lead to lengthy and costly procedures.
• Confiscation: In extreme cases, misclassification can lead to seizure of your products.

Product classification is undeniably one of the three most important tasks in customs. Given the constant evolution of trade agreements and regulations, it is crucial for any company wishing to operate internationally to have up-to-date information and to ensure that its products are correctly classified.

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