Tariff Codes. What they are, types and their importance.

Tariff codes are a fundamental tool for the classification of goods. These codes allow standardized identification of products crossing borders, facilitating the calculation of duties, taxes and compliance with customs regulations in each country.

Using the correct tariff code not only ensures that shipments are processed efficiently, but also avoids problems such as delays, penalties or additional costs due to classification errors.

In this article, we will explain in detail what tariff codes are, the different types that exist, how to consult them and how they affect exports and imports.

What are tariff codes?

Tariff codes are an essential tool in international trade, used to classify and code goods imported or exported between countries in a standardized manner.

The main function of these codes is to identify products precisely, allowing the determination of specific tariffs, duties, taxes and regulations that apply to each shipment.

These codes are based on the Harmonized Commodity Description and Coding System (HS), an international standard developed by the World Customs Organization (WCO) and used by more than 200 countries worldwide.

Basic structure of a tariff code

A standard tariff code has a numerical structure that can vary in length depending on the country. Generally, it is composed of 6 to 10 digits:

First 6 digits: Correspond to the Harmonized System

(HS) and are identical in all member countries.

Additional digits: Each country can add more digits to specify products according to its national needs.

In the European Union, these additional digits form part of the TARIC (Integrated Tariff of the European Union).

In the United States, the Harmonized Tariff Schedule (HTS ) is used.

Practical example:

HS Code (6 digits): 9403.10 (Metal furniture).

TARIC Code (EU): 9403.10.00.10 (Specific metal furniture within the European Union).

HTS Code (USA): 9403.10.00.20 (Specific version for furniture in the United States).

Importance of tariff codes in international trade

Tariff codes are much more than just a simple classification of goods; they play a fundamental role in international trade by ensuring that import and export operations are carried out efficiently, legally and transparently. The following are the main reasons why they are essential in customs management customs management and global logistics management.

1. Determination of tariffs and taxes

Tariff codes allow precise identification of tariffs and taxes to be paid at customs. Each product is assigned a specific tariff depending on the country of destination and the trade agreements in force.

Example: An incorrectly classified product could generate a higher tariff than the one that corresponds, unnecessarily increasing costs.

2. Compliance with rules and regulations

Many products are subject to specific regulations depending on their nature (foodstuffs, chemicals, technological products, etc.). Tariff codes ensure that goods comply with the customs, health and safety controls of the destination country. Avoiding errors in classification prevents penalties, customs detentions or the impossibility of completing the delivery.

3. Expediting customs clearance

A correctly assigned tariff code allows customs authorities to process shipments faster, facilitating the assignment of the green channel (direct release). On the other hand, errors or doubts in classification can lead to a more detailed review in the orange or red channels, causing delays and additional costs.

4. Facilitates global trade

As an internationally standardized system, tariff codes allow companies anywhere in the world to identify and classify their products in a consistent manner. This facilitates trade agreements, allows for greater transparency and ensures that all parties involved (exporters, importers and customs authorities) work with the same information.

5. Statistical recording of international trade

Tariff codes are used by governments and international organizations to collect data on the flow of goods between countries. These data are key to analyzing trade trends, defining economic policies and promoting more favorable trade agreements.

The correct use of tariff codes is not only necessary for calculating tariffs, but also facilitates smooth trade operations, ensures legal compliance and helps avoid unnecessary costs. For companies operating in international trade, knowing and managing tariff codes properly is a fundamental part of a successful logistics strategy.

Types of tariff codes

Tariff codes are classification systems used to identify and categorize goods in international trade. Although the Harmonized System(HS) is the common global basis, there are specific extensions and adaptations that vary by region or country. Below are the main types of tariff codes and their application in different contexts.

1. HS Code (Harmonized System)

It is the international standard classification created by the World Customs Organization (WCO). It is composed of 6 digits and is used by more than 200 countries as a common basis for identifying goods. Its main objective is to facilitate global trade and allow uniform control of goods.

Example: HS 9403.10 – Metal furniture.

2. TARIC Code (European Union)

The TARIC (Integrated Tariff of the European Union) is the HS code extension used within the EU.

Adds additional digits(up to 10 digits) to reflect specific details such as anti-dumping measures, tariff exemptions or EU regulations. It is used both for imports from outside the EU and for intra-EU trade.

Example: 9403.10.00.10 – Metal furniture with specifications applicable within the EU.

3. HTS (Harmonized Tariff Schedule) Code – United States

This is the adaptation of the HS used by U.S. Customs. It includes 10 digits, where the first 6 match the HS code and the remaining 4 add U.S. specifications. It facilitates the classification of products imported into the country and the calculation of tariffs according to U.S. regulations.

Example: 9403.10.00.20 – Metal furniture in the USA, with additional locally defined characteristics.

4. National and local codes

Many countries add additional digits to HS codes to meet specific requirements or regulate goods subject to local regulations. Some examples: Mexico: uses the tariff fraction, based on the HS with national adaptations. Brazil: Adapts the codes under the NCM (Mercosur Common Nomenclature) system.

Example of common structure: HS (6 digits) + National Code (4 additional digits).

5. Intrastat Codes (European Union)

They are used for intra-Community trade between member countries of the European Union.

Unlike the HS or TARIC codes, the Intrastat codes, which are Intrastat codes codes are for statistical purposes, allowing governments to collect data on trade flows within the European single market.

Importance: Although they do not apply tariffs, they are mandatory for recording trade transactions within the EU.

Type	Primary Use	Extension
HS Code	International basis for classification	6 digits
TARIC Code	Adaptation for the European Union	Up to 10 digits
HTS Code (USA)	U.S. specific classification	10 digits
National Codes	Local adaptations according to country	+ National extension
Intrastat Codes	Statistical use in intra-community trade	Based on TARIC/HS

Importance of knowing the types of codes

Understanding and correctly applying the proper tariff code type is key to: -Avoiding customserrors. -Complying with local and internationalregulations. -Calculateduties and taxes accurately. -Optimizinglogistics processes and avoiding delays.

How are the tariff codes structured?

Tariff codes have a standardized structure that facilitates the identification and classification of goods in international trade. Although they may vary slightly in length depending on the country or region, they are all based on the Harmonized System (HS), an international standard that provides the common basis for classifying products.

General structure of the tariff code

A tariff code usually has between 6 and 10 digits, organized in a hierarchical manner. The following explains how it is structured:

First 6 digits – Harmonized System (HS):

They represent the international classification of the goods. They are identical in all member countries of the World Customs Organization (WCO). They are divided into:

-Chapter (2 digits): General category of the product.

-Item (4 digits): Specification within the chapter.

-Subheading (6 digits): More detailed classification.

Additional digits – National Extensions:

Each country or region can add additional digits to adapt the codes to their local needs:

–TARIC in the European Union (up to 10 digits).

–HTS in the United States (10 digits).

These additional digits allow the application of regulations, specific tariffs, restrictions or particular trade measures.

Practical Example of the Structure

Digits	Description	Example
Chapter (2)	General classification (furniture)	94
Item (4)	Type of furniture (metal furniture)	9403
Subheading (6)	Specific Classification	9403.10
Extension (EU)	TARIC regulations within the EU	9403.10.00.10
Extension (USA)	Local U.S. HTS Specification	9403.10.00.20

Importance of correct classification

Understanding the structure of the tariff code allows companies to:

Apply accurate tariffs and taxes: Avoid incorrect payments and possible penalties.

Comply with local regulations: Each country may have specific requirements based on additional digits in the code.

Streamline customs clearance: Facilitates the work of authorities and reduces delays.

Optimize the logistics chain: Correctly classifying goods ensures smooth and efficient trade.

How to consult tariff codes

Correctly consulting and assigning tariff codes is essential to avoid delays, penalties and additional costs in international trade operations. Fortunately, there are several tools and platforms that facilitate this process, both globally and regionally. Below, we explain where and how to consult tariff codes efficiently.

1. Main tools for consulting tariff codes

TARIC system (European Union)

The TARIC (Integrated Tariff of the European Union) is the official tool for consulting tariff codes in EU member countries.

It allows to obtain information on: -Product classification (codes up to 10 digits). -Applicable tariffs, taxes and trade restrictions. Additional regulations such as licenses, anti-dumping measures and prohibitions.

How to access: Through the official portal of the European Commission.

Tax Agency (Spain)

The Spanish Tax Agency offers specific tools to consult tariff codes applicable to exports and imports. It includes details on taxes and regulations in force in the country.

How to access: From the Tax Agency’s web portal in its foreign trade section.

Harmonized Tariff Schedule (HTS) – United States

In the United States, tariff codes are consulted through the Harmonized Tariff Schedule (HTS) system. It provides detailed information on the classification and tariff rates applicable to products entering the country.

How to access: From the USITC website (U.S. International Trade Commission).

2. Basic steps to consult a tariff code

To locate and assign the correct code to your goods, follow these steps:

Identifies the merchandise:

Describe the product in detail (use, function, materials, etc.). Example: “Metal office furniture”.

Use the right platform:

If you export to the European Union: consult the TARIC.

If you export to the United States: use the HTS system.

For global exports: use the Harmonized System (HS).

Search by keyword or category:

Enter terms related to the merchandise (example: “metal furniture”). Review the specific applicable subcategories and extensions.

Verify additional regulations:

Check for any special tariffs, exemptions or additional requirements such as permits or licenses.

3. Tips for a successful consultation

Be detailed in the description: The more precise the description of your goods, the easier it will be to find the right code.

Check the regulations of the destination country: Each country may add extensions to the HS code. Be sure to check the specific version (TARIC, HTS, etc.).

Document the process: Keep records of how you assigned the code and the tools used to avoid disputes with customs authorities.

Have a logistics expert: A partner like Across Logistics can help you assign codes correctly, ensuring compliance and avoiding costly mistakes.

Tariff codes for exports and imports: Practical Cases

Tariff codes are essential for calculating tariffs, determining taxes and ensuring regulatory compliance in international trade operations. Here are two practical examples of their use in exports and imports, highlighting their impact on logistics and customs.

Case Study 1: Export from Spain to the U.S.

Product: Small appliances, such as an electric toaster.

Step 1: Classification in the TARIC system.

TARIC code: 8516.72.00.90 Description: “Electric cooking appliances, toasters”.

Step 2: Conversion to the HTS system for entry into the United States.

HTS Code: 8516.72.00.30 Description: “Electric toasters, bread”.

Impact:

The tariff code determines a duty of 2.4% on the value of the merchandise. If the code is assigned incorrectly, the duty may be higher or the merchandise may be held in customs for additional inspection.

Case Study 2: Import into the European Union from China

Product: Plastic toys for children.

Step 1: Classification in the global HS system.

HS Code: 9503.00 Description: “Toys for children”.

Step 2: Adaptation to the TARIC system in the EU.

TARIC code: 9503.00.39.00 Description: “Other plastic toys”. Additional regulation: EC Certificate of Conformity mandatory for toys in the EU.

Impact:

Tariff of 4.7% applicable according to EU regulations. Documentation requirements: commercial invoice, certificate of conformity, and detailed packing list.

Consequence of an error in the code:

An incorrect code could result in penalties or products being held at customs for non-compliance with specific regulations.

Across Logistics: Your Partner in Tariff Code Management

At Across Logistics we offer an integral service so that your company can focus on its growth while we take care of the customs logistics. How can we help you?

Accurate Classification of Goods: We analyze your products and assign the appropriate tariff code, ensuring that it complies with international and local regulations.

Regulatory Compliance: We keep up to date with Harmonized System (HS) updates and national extensions, such as TARIC and HTS, to avoid errors that can lead to penalties or delays.

Comprehensive Documentation Management: We take care of all the necessary documentation, from the commercial invoice to specific certificates, to ensure that your shipments are processed smoothly through customs.

Cost and Time Reduction: Correct classification not only avoids problems, but also optimizes the calculation of duties and taxes, helping you reduce operating costs.

With Across Logistics, you have a trusted partner that combines experience, expertise and technology to manage the tariff codes of your international operations efficiently. Let us simplify your logistics and ensure that your shipments reach their destination without complications.