When goods are declared for import or export to customs in the European Union, they must be classified according to the Combined Nomenclature. Proper classification ensures compliance, avoids the risk of penalties and provides knowledge. Classification is the foundation for building your customs structure in an efficient way and creating visibility on possible cost savings.

How to classify for customs purposes? Start with covering the below 5 steps:

1. Know your products and have detailed product information available. TIP: Ensure products have a customs proof product description;
2. Implement written procedures on how to classify and reference the General Rules for the Interpretation of the Harmonized System. TIP: use AEO Guidelines;
3. Assign the role to classification experts and ensure to provide periodic training. TIP: Also make product/technical experts available within your organization. They are crucial for a correct classification;
4. Maintain the classification master data in a database appropriate for the size of the customs activities of the organization. TIP: Periodically audit your database for correctness, consistency and tariff changes;
5. Apply for Binding Tariff Information (BTI) in case of doubts regarding the correctness of the classification. Note that this BTI is binding for both authorities and the holder. TIP: Check the BTI database of the European Commission and compare your product(s) with an existing BTI for similar products.