HS codes

The WCO's nomenclature has 21 sections and chapters running to 97. Using its own apple example:

Dried apples are in a different heading altogether, at 0813.30. A small fact like "dried" can change the heading, which is why the description matters so much.

Chapters 98 and 99 are reserved for national use. The US, for one, puts its Section 232 and Section 301 duties in chapter 99, so you can report two or three codes on one line. See US tariff changes.

1. Write down what the goods are, what they're made of, and what they do. Include the state they're imported in.
2. Find the chapter, then read its notes. Notes can exclude goods from a chapter that looks right.
3. Read the heading text, not just the title. The General Interpretive Rules are the method, and Rule 1 settles most cases.
4. Work down to six digits, one level at a time. Don't compare a two-dash line with a one-dash line.
5. Move to the national tariff for the destination. HMRC warns that product decisions vary by country, even at six digits, so a code from an overseas supplier needs checking.
6. Write down your reasoning, and check for rulings on similar goods. The US has a searchable database at CROSS, and the EU publishes its binding decisions.

A first candidate from the HS code classifier saves time on steps 1 to 4, but you still need to read the notes on anything where the duty is high or the goods are borderline.

As an illustration, take a line valued at 80,000. If the correct rate is 12% and you declared it at 2.5%, that's 7,600 underpaid: 9,600 due against 2,000 paid. Customs can usually come back for that sum during its review period, and interest or a penalty may follow. In the US, the importer has a legal duty of reasonable care in classifying. The fact that a broker or a supplier chose the code doesn't move that responsibility. It's the same in the other direction: if you've overpaid on the wrong code, you've simply been losing the money.

A ruling can stop being valid before that time. A change of nomenclature is the classic cause, and HS 2028 arrives on 1 January 2028. Ask for one when the duty difference between your candidate codes justifies the wait.