GlossaryEN1 min readUpdated: Jun 22, 2026
Customs Classification Process
The customs classification process assigns every shipment a valid tariff code, which determines the applicable duty rate, any trade defence measures, and eligibility for preferential treatment under free trade agreements.
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Source: https://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx
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Definition & Explanation
The customs classification process assigns every shipment a valid tariff code, which determines the applicable duty rate, any trade defence measures, and eligibility for preferential treatment under free trade agreements. Starting from an accurate goods description—covering material, function, and presentation—the commodity is placed within the Harmonized System (HS) and given a six- to ten-digit number. Declarants typically work with digital classification tools or internal databases; for borderline cases, they seek a Binding Tariff Information (BTI) ruling from the relevant customs authority. A wrong classification can trigger duty reassessments and shipment holds, and repeated errors may result in substantial penalties. The process is therefore both a legal obligation and a core element of trade compliance.
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