CEFTA
The Harmonized System (HS) Code
The CEFTA Parties follow the headings and the subheadings used in the Harmonised System (HS).
The Customs code typically consists of six or eight numerical digits, although countries and economies may add supplementary numbers up to 10 or even 12 digits in order to provide more detailed and precise classification of goods or to subject certain products to particular trade measures (e.g., trade defence mechanisms like antidumping duties, safeguards and/or end use requirements). The Harmonized Commodity Description and Coding System commonly referred to as “Harmonized System” or simply “HS” is a multipurpose international product classification developed by the World Customs Organization(WCO) and applied by most trading countries and economies.
It comprises more than 5,000 commodity groups, each identified by a six digit code, arranged in a legal and logical structure, and is supported by well-defined rules to achieve uniform classification. The system is universally recognised and utilised by more than 200 countries and economies (including the CEFTA Parties and the European Union) as a basis for their Customs tariffs and for the collection of international trade statistics. The HS is thus a universal economic language and code for goods, and an indispensable tool for international trade. Over 98% of the merchandise traded internationally is classified in terms of the HS.
The Harmonized System is governed by the International Convention on the Harmonized Commodity Description and Coding System (HS Convention). The official interpretation of the HS is in the Explanatory Notes issued by the WCO and is available on the WCO’s HS Database, which groups all the available HS Tools, including the information on the HS Nomenclature, the Compendium of Classification Opinions, the Explanatory Notes, the Alphabetical Index, and the Brochure on Classification Decisions taken by the Harmonized System Committee.
The HS code determines the specific product requirements for exports or imports, and the related tariff rates. Incorrect classification of the goods can lead to delayed clearance, overpayment of duties or taxes, fines and penalties, or enhanced regulatory requirements.