Goods subject to trade must be classified in the Combined Nomenclature in order to receive adequate treatment. Application of correct measures (the rate of customs duty, non-tariff measures, determination of origin) to goods placed under a customs procedure depends on their classification in the customs nomenclature.
The Common Customs Tariff of the European Union is based on the international Nomenclature of the Harmonised System and the Combined Nomenclature of the EU. The latter integrates the nomenclature (a detailed list of goods) and the applicable rates of duty. The customs tariff comprises the entire legislation of the EU which affects the rates of the customs duty. The Harmonised System is an international multi-purpose nomenclature which was elaborated under the auspices of the World Customs Organisation (WCO). The international Nomenclature of the Harmonised System (HS) is governed by the international Convention on the Harmonised Commodity Description and Coding System.
The Combined Nomenclature of the EU comprises additional 8-digit subdivisions of goods.
Classifying goods in the Customs Tariff means that goods are classified under the specific subheading of the Combined Nomenclature or under the TARIC code according to the applicable provisions. TARIC is the integrated Tariff of the EU and a database which integrates all measures relating to the EU customs tariff, commercial and agricultural legislation. The TARIC nomenclature comprises additional 10-digit TARIC subdivisions of goods.
The customs authorities can decide on the classification of certain goods in the Nomenclature of the Customs Tariff by issuing a written decision, the so-called Binding Tariff Information (BTI).
Treatment of goods in customs procedures as well as in other procedures depends on the correct classification of goods in the customs tariff, which is also the basis for the application of correct customs duties, anti-dumping duties, quotas, waivers, VAT, agricultural subsidies etc.