What is a Tariff Code?
A tariff code is a unique sequence of numbers assigned to products to identify them in the international trading system. These codes are used to classify goods being imported or exported and to determine the applicable duties, taxes, and regulations. By standardizing product classifications, tariff codes make it easier for customs agencies around the world to assess and apply the correct charges on goods crossing borders.
Each country typically has its own system for determining specific tariff rates, and tariff codes help facilitate this process by identifying the type of product, its origin, and, in some cases, even its composition or use. These codes are crucial for ensuring compliance with trade regulations, avoiding misclassification of goods, and accurately calculating the duties owed.
What is an HS Code?
The Harmonized System (HS) code is a globally standardized system for classifying products in international trade. The World Customs Organization (WCO) developed the HS system to create a universal structure for identifying goods through a standardized, six-digit code. The HS code provides a base classification that can then be expanded by individual countries to add further specificity.
For example, the six-digit HS code for a product might look like this: 8501.10. The first two digits represent the "chapter" or main category, the next two identify the "heading" within that category, and the final two digits narrow down the "subheading."
Many countries build upon the HS code by adding additional digits, creating codes that extend beyond six digits. These longer codes provide even more specific classifications, which can affect the exact duties and regulations for a given product.
Where Can I Find Tariff Numbers?
There are several ways to find tariff codes for products, and knowing where to look can make the process more efficient:
- Customs Authority Websites: Many countries' customs agencies, like the U.S. Customs and Border Protection or the European Union's Trade Helpdesk, offer online tools for searching tariff codes.
- Global Trade Databases: Websites like the World Customs Organization’s Harmonized System Database or the International Trade Centre’s Market Access Map can help you search for the correct HS codes.
- Government Trade Portals: For exporters, national trade support portals often include HS code search tools or downloadable databases. For example, in the EU, the Access2Markets portal helps businesses find the correct codes for their products.
- Shipping Providers and Customs Brokers: If you’re unsure which tariff code applies to your product, consulting with a customs broker or your shipping provider can be helpful. Many shipping providers also have classification tools or resources to assist with finding the correct code.
- Industry Associations and Guides: Some industries publish specific tariff code guides that can be a helpful resource if your product falls within a highly specialized category.
What is TARIC?
TARIC, or the Integrated Tariff of the European Union, is the EU’s centralized database that contains detailed information on tariff measures, restrictions, and regulations for goods entering and exiting the EU. The TARIC system uses an 11-digit code that builds on the HS code, making it highly specific and tailored to EU requirements. TARIC codes not only help identify goods but also specify any regulations, import quotas, or trade restrictions that may apply.
The TARIC system is accessible to businesses and the public through the European Commission's TARIC Consultation Database. It is an invaluable tool for businesses exporting to or importing from the EU, as it helps them understand the full range of tariffs, duty rates, and regulatory requirements that apply to their products.
In summary, TARIC streamlines the process of trading with the EU by giving importers and exporters detailed, accessible information on all tariffs and rules affecting their goods.
How to Add Tariff Code Descriptions to Packrooster Shipping
After you know what tariff codes you should use for your products you can add them to Shopify. Here is a guide on how to add HS codes for your products in Shopify.
After your products have a HS code in Shopify you can add a custom description for them in Packrooster Shipping. If you don't use custom descriptions in HS codes Packrooster Shipping will use the default description of the HS code. Open Packrooster Shipping and go to tariff code descriptions. In there add your HS code that you have in your products and a custom description for that HS code and press "+ Add". If Packrooster Shipping has a custom description for HS codes it will automatically use that description in your custom declarations.
Don't have Packrooster Shipping yet in your Shopify store? You can install Packrooster Shipping from here.
