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The correct HS/CN code follows from the objective characteristics of the goods: material, composition, function and degree of processing, assessed under the General Interpretative Rules of the Combined Nomenclature. You verify the code and its measures in the EU TARIC database or the UK Trade Tariff, and for borderline or recurring goods you apply for a Binding Tariff Information (BTI), which binds EU customs for 3 years.
Where to start: the goods description, not the invoice name
The starting point is an accurate product description: type, material, composition, function and degree of processing. The trade name on the invoice is not enough, because the same product described in words may map to different codes, and each carries a different duty rate, different VAT and different permit requirements. The more precisely the goods are described, the less room there is for error.
General Interpretative Rules and explanatory notes
The Combined Nomenclature includes the General Interpretative Rules, which settle how to classify sets, incomplete goods and mixtures, among others. The explanatory notes to the HS and the CN, published by the World Customs Organization and the European Commission, help as well. Classifying by name alone skips those rules, and that is where most errors are born.
Tariff tools: TARIC and the UK Trade Tariff
You check the rates and measures assigned to a code in the European Commission TARIC database. For trade with the United Kingdom a separate UK tariff applies, available in the Trade Tariff tool on GOV.UK. In the UK the binding equivalent of a BTI is an Advance Tariff Ruling issued by HMRC.
When to apply for a BTI
When classification is in doubt or the goods move regularly, apply for a Binding Tariff Information (BTI). It is a customs decision that confirms the correct code for the described goods and binds customs administrations across the EU for 3 years. It gives certainty of the rate before the goods move and closes the dispute over the code before it can start. Our glossary explains more terms.
And if the code turns out wrong
Misclassification means a corrected declaration, back payment of duty and VAT with interest, and often an inspection and a stalled clearance. Who exactly gets that bill and how the dispute unfolds after an audit is covered in our article on who pays the duty and VAT after a customs audit when the tariff code was wrong.
OTSL's role
OTSL handles customs clearance and plans border procedures so that the code is set from the characteristics of the goods before the truck reaches the border. We check the description, flag when to apply for a BTI, and make sure the declaration matches what is actually on the truck. Unsure how your shipment should be classified? Get in touch.
How long is a Binding Tariff Information decision valid?
A Binding Tariff Information decision issued by customs authorities remains valid for three years across European Union member states, binding customs administration regarding product classification.
Step by step
- Gather product details. Collect precise technical information about the material, composition, and function of the item.
- Apply classification rules. Use the General Interpretative Rules to determine the correct heading for the shipment.
- Consult tariff tools. Check product parameters in official customs lookup systems to identify applicable duty rates.
- Request a BTI decision. Apply for an official ruling when dealing with ambiguous or recurring merchandise.
- Confirm declaration details. Verify that the assigned classification matches the physical shipment before customs clearance.
Definitions
- HS (Harmonised System): An international commodity classification system used for global trade standardisation.
- CN (Combined Nomenclature): The European Union's eight-digit classification system extending the global HS codes.
- TARIC (Integrated Tariff of the European Communities): An official database providing duty rates and trade measures for goods entering the EU.
- BTI (Binding Tariff Information): An official customs decision determining the correct commodity code for specific goods.
When does this rule not apply?
This standard classification process does not apply to goods moved solely within the European Single Market, unless specific trade restrictions or health controls are triggered.
The OTSL role
OTSL supports businesses in verifying product documentation during international haulage and offers support with freight arrangements. When organising movements via Groupage (LTL), our team checks operational clarity, referring also to rules regarding restricted goods in transport.
