The tariff description of a good corresponds to the nature of the product : « What is it? »
It is one of the fondamental notions together with the origine and the customs value, in order to determine the customs treatment of the good.
Everything has a customs code associated with the exception of:
Tasks to be completed when creating an operating procedure (from creation to publication)
- Enter the Title of the procedure: Description of the operating procedure - Region (APAC, EMEA, LAM, NAM) - Country (Optional) - ERP (PI1, PF1, WP1)
- Add the following Labels :
- Fill all fields as described
- SAP transactions :
- notify them on the right : References , Link the SAP transaction name notified here with the SAP transaction page registered in the file (page adress)
- notify the transaction SAP inside the document in the appropriate place and add a macro : Include Content - Search the name of the page and Save
- Once the procedure is completed, publish it using the SBS-OtC approval workflow
Objective and Scope
The process is a guide to the mode of determination of the nature of a product.
It is one of the fondamental notions together with the origine and the customs value, in order to determine the customs treatment of the good.
Everything has a customs code associated with the exception of:
-Human beings-Services-Means of transport needed for the conveyance of goods-Note: Also the electricity has a tariff codeCustoms Classification
The SH International Convention became effective the 1th of January 1988. It aims to:
Ø Facilitate the international business.Ø Minimize the costs of the international exchanges thanks to a uniformisation of commercial documents and an harmonisation of data.Ø Simplify the collection, comparison and analysis of statistics.All OMD member countries are required to follow this directive:
ÞThe SH codes are the same in all the countries with whom we do business*99% of world commercial exchanges are identified by the harmonised system nomenclature
Since 1988, 5 major revision have taken place. The last one dates back to 01.01.2017. These revisions take into account:
Ø The social and/or environmental protectionØ Multiple uses productsØ Flows of outnumbered and/or gaining importance productsØ Harmonisation of the interpretation of the regulation from different countriesØ Technological evolutionThese revisions consist in the creation, suppression and extension of SH codes.
- Inside EU
For a customs point of view the EU is considered as a unique country. Thus, the customs classification is common to all the EU member countries: Community Harmonization
Note: The two unions where the codes are harmonized are EU and MERCOSUR.
On the SH convention base, the commission made a regulation:
ØHarmonized System (HS): 6 digits. The first 6 digits are the same all over the world.ØCombined Nomenclature (NC): 8 digits (HS + 2 digits). The NC determines the customs duty for the importations in UE and it is used for external commercial statistics EUROSTATØCommon Integrated Tariff (TARIC): 10 digits (NC + 2 digits). The two last digits allow to define the customs measures to apply:-Tariff measures: Suspensions, quotas-Protective measures: anti-dumping duty, countervailing duty-Measures relative to agriculture-Controls and prohibitions measuresThe European codes are therefore constituted by 10 digits.
ØCombined Nomenclature (NC): 8 digits (HS + 2 digits).ØCommon Integrated Tariff (TARIC): 10 digits (NC + 2 digits).
- Outside of EU
Beyond the first 6 digits which are shared all over the world for the OMD member countries, every country decide the digits and the number of digits to associate to a product (ex. EU uses 10 digits codes, while Saudi Arabia uses 12 digits).
Therefore, it is possible that:
ØThe same product can have different customs code in different countriesExample of the Nutella jar:
customs code in Europe 1806.90.60.10
customs code in Suisse 1806.90.69.00
ØTwo equal customs code can correspond to different products in different countriesExample of the code 1806.90.31.00
Nomenclature in Europe :
Nomenclature in Suisse :
Architecture of nomenclatures
Classification works as a loupe by describing goods more on more precisely by going further to the code digits. There are 21 sections:
97 Chapters: 2 first digits:
1200 Headings: 4 first digits (Chapter + 2 digits): 
5 000 Subheadings: 6 first digits (Heading + 2 digits) corresponding to the HS Code 
The Code is decided by the OMD for all the country members : the rest of the code is decided from the countries autonomously Most Used websites
Ø CONEX : customs encyclopediaØ RITA PRODOUANE : similar to CONEX but it is the french official website for the custom, thus it is always very updatedØ ECICS : having the CAS RN, it gives you the first 8 digits of the TARICØ TARIC EUROPAØ EUR.Lex EUROPA : to search a regulation (database)Ø ZAUBA : typing in the name of the product you find the code used for the importation/exportation of IndiaØ MARKET ACCESS DATABASEØ EUROSTATSinequa
Sinequa provides chemical and physical information about the product.
Scope
ERP
