HS, CN, TARIC, EZT Codes: Key to Understanding Customs Codes

You will encounter these abbreviations frequently in international trade. But what exactly is the difference between the Harmonized System (HS), Combined Nomenclature (CN), TARIC, and the Electronic Customs Tariff (EZT)?

Harmonized System (HS Code)

The full name of the Harmonized System is the "Harmonized Commodity Description and Coding System," and it is an internationally recognized nomenclature for classifying goods. HS, which is the commonly used abbreviation, is used in over 200 countries (including the EU, USA, Japan, and China) and covers more than 5,000 product groups. Each group is clearly identified by a 6-digit code. HS was developed by the World Customs Organization (WCO). There are standardized rules to ensure uniform implementation of these codes in all countries using the Harmonized System. These rules, as well as HS itself, are updated every 5 to 6 years by the WCO HS Committee.

Key point: The first 6 digits of the customs tariff number are the same in all countries using HS.

Combined Nomenclature (CN Code)

In 1987, with the introduction of the common customs tariff, the EU, together with Regulation (EEC) 2658/87, created the basis for the Combined Nomenclature (CN). CN is based on the Harmonized System. Therefore, the first 6 digits are identical to the product group established by HS, with the addition of two additional digits (seventh and eighth). The current CN list is published annually, no later than October 31, for the following year in the Official Journal of the EU, available in all EU languages.

The eight-digit CN code constitutes the statistical commodity number used for export and INTRASTAT.

TARIC – Integrated Tariff of the European Communities

TARIC is based on the Combined Nomenclature. Therefore, the first 8 digits are identical to CN. TARIC is the standard customs tariff of the European Union and contains an additional 2 digits, meaning that TARIC consists of ten digits. These codes contain information regarding, for example, anti-dumping duties, suspension of duties, or tariff quotas.

Product Coding System in the EU

Individual countries and country unions may have additional digits in their national product coding systems, up to 12 digits. Typically, these clarifying digits are consistent with international systems. The further to the right a digit is in the code, the more detailed the classification it represents.

Examples from Different Countries

Different countries have their own specific coding systems:

• United States: Uses a 10-digit HTS (Harmonized Tariff Schedule) code. The first 6 digits are international (Chapter, Heading, Subheading), followed by 4 national digits (Tariff Rate Lines and Statistical Suffix).

• China: Uses a 13-digit Custom Tariff Code. The first 8 digits are international (Chapter, Heading, HS Subheading), followed by 5 national digits (Customs Supervisory and Customs Inspection & Quarantine).

• India: Uses an 8-digit HSN (Harmonised System of Nomenclature) code. The first 6 digits are international (Chapter, Heading, Subheading), followed by 2 national digits (Tariff Item).

• Japan: Uses a 9-digit Tariff Schedule code. The first 6 digits are international (Chapter, Heading, HS Subheading), followed by 3 national digits for Japan's domestic codes for exports and imports.

• United Kingdom: Uses a 10-digit UK Global Tariff (UKGT) code, also known as Commodity Codes or Trade Tariff. The first 6 digits are international (Chapter, Heading, Subheading), followed by 4 national digits.

EZT – Electronic Customs Tariff

The Electronic Customs Tariff is the national customs tariff of the Federal Republic of Germany. It is identical to the first ten digits of TARIC, extended by an eleventh digit. The total customs tariff number thus has eleven digits, with only the first 10 digits needing to be uniform across the entire EU.

The reason for the existence of national adjustments for each country in the EU are effects that are still being developed at the national level. Among these are the amount of import VAT (reduced or standard rate) or excise tax, such as on beer, tobacco, or coffee. This means, however, that these national requirements are not recognizable in TARIC. EZT coding reveals only the requirements imposed by Germany, and not those of other member states.

How Precisely Does an HS Code Identify a Product?

This depends on the product. Some products have precise codes (e.g., apples 0808 10), but you won't see what varieties they are, although the information will be very precise. If we consider, for example, a men's leather belt for trousers, unfortunately, you won't find such a product in a direct code description, but you will find (articles of apparel and clothing accessories of leather or composition leather 4203 and extension 4203 10 00 articles of apparel, or 4203 40 10 other clothing accessories). Another case are products with a very general code—customs codes are often general or describe a product group, e.g., "other"—then we must go back up the code tree to learn the broader product group characteristic of a given code.

HS Codes: Foundation for Export Analysis

HS codes are the foundation for creating the first market-ready, cyclically updated Export and Sales Report from 150 markets.

What Does the Export Indicator Report Contain?

📊 Analysis of product import in the selected time period

📊 Export dynamics of the product in the selected time period

📊 Analysis of product export in the selected time period

📊 Ranking: optimal target markets according to selected HS codes

What Will Your Business Gain from Export Indicator?

✔️ You will learn, among other things, which markets are most receptive from the perspective of your product, how strong the domestic market is, and what share of imports is made up of exports from your base market.

✔️ Properly utilized information can protect your business from problems related to improperly chosen direction, prevent burning through marketing budgets, and allow you to gain a competitive advantage.

Have doubts? Download a sample report to see how HS code analysis can transform your export strategy.