Tariff Classification

Tariff Classification is the process of assigning goods their correct code under the Harmonized System (HS) and the importing country's tariff schedule. Every product is classified into a numeric code (six digits internationally under the HS, extended to eight or ten nationally), and this code determines the duty and tax rate, any import/export controls, licensing, quotas and preferential eligibility, as well as feeding trade statistics.

Getting classification right is a legal obligation of the importer and often difficult: similar products can fall under very different codes with very different duty rates, and classification follows detailed interpretive rules, notes and rulings. Misclassification — deliberate or accidental — leads to under- or over-payment of duty, penalties, delays and audits. Because the code drives the money and the compliance, tariff classification is one of the most consequential and scrutinised tasks in customs, and businesses often seek binding tariff rulings for certainty. It is the foundation on which duty calculation and trade compliance rest.