Today, the main classification of goods is the Harmonized Commodity Description and Coding System (HS) in the global economic community. It is used in more than 177 countries and economic unions as the basis for their customs tariffs and collection of international trade statistics.
Commodity nomenclatures of various countries differ from each other, despite the fact that in 98 % of cases they are based on the HS developed by the World Customs Organization.
- For correct determination of the customs duty in the country of import and amount of additional taxes (VAT, excise, etc.)
- For determination of the procedures of export/import of goods
- For comparison of customs tariffs and statistics on foreign trade
The Ukrainian Classifier of Goods for Foreign Economic Activity (UCG FEA) is based on the HS and the ЕС Combined Nomenclature (CN). ЕС Combined Nomenclature (CN) is the tariff and statistical classification based on international classification of the HS, in which CN code consists of 8 digits.
The TARIC (Tarif Integre de la Communaute) is the combined tariff of the European Community that is established on the basis of the CN and includes the Community legislation. The TARIC is the direct basis for preparation of working tariffs of the EU member states. Use of TARIC codes is mandatory for customs and statistical declarations in trade with third countries.
The TARIC code includes additional sub-positions necessary to describe products, to which certain Community measures are applied. It specifies the actual applied rates of preferential duties and duty rates for third countries and reflects all the measures of trade policy.