Guide to Proper EU Customs Tariff Classification for SMEs/ETIs

Import-Export Strategies 2025

🗓️ 27 / 05 / 2025 • updated: 27 / 05 / 2025 • ⏱️ 10 min read

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Table of Contents

• Introduction
• The Structure of a 10-Digit TARIC Code
• The General Rules of Interpretation (GRI)
• Concrete Examples of Tariff Classification (TARIC)
• Sources for Accurate Classification
• The Challenge of Automated Classification Tools
• SIAH: TradeCopilot AI Applying the GRIs
• Common Mistakes & Best Practices
• Tariff Classification FAQ
• Official Sources & Tools
• Conclusion

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Introduction: The Strategic Importance of Customs Tariff Classification

Classifying goods for customs – that is, identifying the applicable customs code – is a strategic issue for any exporting or importing company. It determines your product's customs identity and dictates how it's treated at the border.

Correct classification allows you to:

• Assign a unique, internationally recognized code to each product
• Ensure proper application of customs duties and VAT (misclassification can lead to over- or under-taxation)
• Identify possible non-tariff measures (quotas, prohibitions, sanitary controls, technical standards) linked to this code
• Provide reliable and harmonized external trade statistics

A single mistake in the nomenclature (over 15,500 headings!) can subject goods to higher duties or unexpected restrictions. Proper classification secures your operations, avoids litigation, and prevents customs penalties. It is therefore essential for compliance and competitiveness.

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The Structure of a 10-Digit TARIC Code

Before addressing the rules, you should understand how the customs code is structured. The TARIC is organized into sections, chapters, headings, and subheadings:

• Section: broad category (e.g., Section I for animals/animal products)
• Chapter (2 digits): product family (e.g., 01 = live animals)
• Heading (4 digits): chapter subdivision (e.g., 0104 = sheep/goats)
• Subheading (6 digits: HS): global "Harmonized System" code (e.g., 010410 = sheep)
• CN (8 digits): EU "Combined Nomenclature" (HS + 2 EU digits). E.g., 01041010 = pure-bred breeding sheep
• TARIC (10 digits): EU import code, detailed CN + 2 digits (often "00" if not subdivided). E.g., 0104101000 = pure-bred breeding sheep

The 10-digit code determines applicable duties and measures throughout the EU (official source).

Example
Subposition NC 8531 20 20 ("LED lamps and tubes") splits into two TARIC codes:

• 8531 20 20 10 (civil aircraft, possibly exempt)
• 8531 20 20 90 (other uses)

So the final TARIC code includes all subdivisions required for applying the common customs tariff.

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The General Rules of Interpretation (GRI): The Foundation of Classification

The EU Common Customs Tariff (Regulation EEC 2658/87) is governed by 6 General Rules of Interpretation (GRI) – the "golden rules" for classifying goods.
Always apply them in order, starting from GRI 1 and moving to the next only if needed.

6 GRIs summarized:

• GRI 1 – Headings & Notes Prevail: Start with the precise of the headings plus section/chapter notes
• GRI 2 – Incomplete, Unfinished or Mixed Products:
  • 2a) An incomplete or dismantled product is classified as the finished product if it has the essential character
  • 2b) Mixed or composite materials: classify by the predominant material, if possible
• GRI 3 – Multiple Possible Classifications (Multi-purpose Goods):
  • 3a) The most specific heading prevails
  • 3b) If unsure, essential character (main material/use)
  • 3c) Otherwise, the heading appearing last in numerical order among those which merit equal consideration
• GRI 4 – Analogy: If no heading exists, classify by analogy with a similar product (rare)
• GRI 5 – Packaging/Containers:
  • 5a) Special durable cases/containers for an item are classified with that item
  • 5b) Standard packaging follows the product unless reusable
• GRI 6 – Subheadings: Rules 1–5 apply by analogy at every subheading level

Example An auto repair kit (compressor + tire sealant + tools):
Classified by "essential character" (GRI 3b), i.e., the compressor, not individually.

To remember: Always apply the GRIs and systematically read the legal notes for sections, chapters, and subheadings!

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Concrete Examples of Tariff Classification (TARIC)

Here are typical cases illustrating TARIC classification in the EU (official sources: TARIC, douane.gouv.fr):

• Smartphone (mobile phone)
  Classified under 8517 ("Telephone sets"). More specifically:
  8517 12 00 = wireless cellular phones
  EU customs duty: 0% (exempt) • France VAT: 20%

• Laptop computer
  Chapter 84, code: 8471 30 00 ("portable automatic data processing machines ≤ 10 kg")
  EU customs duty: 0% • France VAT: 20%

• Flat-pack furniture, unassembled
  Shipped unfinished: classified as finished furniture (GRI 2a).
  Example: a bookcase kit is classified as furniture (chapter 94), not separate parts.

• Product assortment / Kit
  E.g.: "cup + tea bags + spoon" gift set
  Customs apply GRI 3b: classified by the article that gives the set its "essential character" (here, the cup if predominant).

To find your products' classification, use the TARIC database or French RITA interface.
Explanatory Notes and BTI (see further) can help secure your classification if in doubt.

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Sources for Accurate Classification

To ensure reliable tariff classification, use:

• Binding Tariff Information (BTI/RTC)
  An official decision, upon request, binding for all EU customs for 3 years.
  Apply via EBTI/RITA portal (procedure here).

• Jurisprudence
  Disputes can go up to the Court of Justice of the EU (CJEU). Judgments may specify/exclude certain classifications (e.g., the 2024 judgment on "cat trees", chap. 94).

• Harmonized System Explanatory Notes (NESH, WCO)
  Official WCO guidance on each HS 6-digit heading.
  See examples.

• Combined Nomenclature Explanatory Notes (NENC)
  EU versions, up to 8 digits, published in the OJ EU C series (EUR-Lex).

• EU Implementing Regulations
  (Officially rule on a product’s classification)
  E.g.: Regulation (EU) 2022/1998 for a bluetooth hands-free kit.

• Tariff Database/Online Tools:

  • TARIC Europe
  • RITA France Customs

Tip: Never stay alone with a doubt, request a BTI and always check the latest sources and jurisprudence for each product.

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The Challenge of Automated Classification Tools

Many companies use "automatic classification" tools. Beware:

• Most tools (even RITA douane.gouv.fr) use keyword matching, not the GRIs.
• Some commercial tools suggest codes by text similarity, without real contextual analysis.
  => High error risk if the correct code depends on a chapter note or case law not considered.

Example: Search "USB key":
A basic tool might suggest the wrong code. Only strict application of legal notes, GRIs, and EU regulations/case law can prevent misclassification.

Automated tools are helpful for first guidance but do not replace (human or well-trained AI) expertise.

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SIAH: TradeCopilot AI Applying the GRIs

TradeCopilot has developed the SIAH module – AI that follows GRI order and documents its reasoning step by step.

• SIAH analyzes product description, consults HS, NESH, NENC, EU regulations, and case law, then proposes a justified TARIC code
• It automatically enriches the description expertly to avoid ambiguities
• At each step, justification is written and based on official texts (useful for customs inspection)
• Try the demo at thetradecopilot.com

By simulating a full operation (market choice, sourcing, Incoterms, etc.), TradeCopilot and SIAH secure your classification – no expert needed at every stage.

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Common Mistakes & Best Practices

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Tariff Classification FAQ

Q: What is the difference between an HS code, a CN code, and a TARIC code?
A:

• HS (6 digits): international base (195+ countries)
• CN (8 digits): EU version; for exports/intra-EU stats (see here)
• TARIC (10 digits): CN plus 2, the only code valid for EU imports (tariffs, quotas, special measures)

Q: Where do I find my product's customs code?
A:
Via:

• TARIC Database (EU)
• RITA Tool (France) – keywords, technical description, legal notes, option to request a BTI if unsure

Q: What are the risks of wrong classification?
A:

• Tariff adjustments, late payment interest, fines, blocks, seizures—even criminal penalties for serious cases
• Tip: always declare the relevant code to avoid disputes and delays

Q: Are customs codes the same in all countries?
A:

• The first 6 digits (HS) are the same in 195+ countries using the Harmonized System
• Beyond: each country or economic union may add its own digits:
  • EU: NC8 or TARIC10
  • US: HTSUS (10 digits)
  • Switzerland: 8 digits, etc.
• Chapters 98/99 often serve unique national purposes (special provisions, exemptions)
• For export, use the destination country's code: the first 6 digits should be the same, but check for local versions. See more

Q: How can I be sure about my tariff classification?
A:

• The safest way is to request a BTI (Binding Tariff Information); it's free and valid for 3 years across the EU.
• Provide a full technical description, photos, sample if needed.
• Also read the explanatory notes (NESH, NENC) and monitor EU published regulations.
• Train your team regularly: changes in material/function can affect the classification—stay up to date!

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Official Sources & Tools for Customs Tariff Classification

• French Customs — Request Binding Tariff Information (BTI)

• RITA — Official French Tariff Database (search NC, TARIC, texts, and classification regulations)

• TARIC Europa — Integrated EU Tariff (search by code or keyword)

• WCO Trade Tools — Harmonized System Explanatory Notes (NESH, HS)

• EUR-Lex — Classification Regulations, CN Explanatory Notes (EU Official Journal)

• French Customs — Guide: Understanding the Customs Nomenclature

• French Customs — How to Find a Customs Code

• French Customs — Combined Nomenclature Explanatory Notes (NENC)

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Conclusion

By following these tips and relying on reliable official sources (douane.gouv.fr), you will better master the customs tariff classification for your goods.
Proper classification is the key to smooth importing/exporting, cost optimization, and avoiding unpleasant surprises at the border.

Make the most of the available tools (customs databases, smart assistants like SIAH) to save time while complying with EU customs requirements. Happy trading!

Wishing you success in your import-export projects!

Updated: May 2025