Commodity codes are crucial to anyone who is trading goods overseas.

The responsibility for determining the correct code for an export customs declaration lies with the exporter, and with the importer for an import customs declaration, regardless of the Incoterm.

Also known as a HS Code (Harmonised System), Tariff Code, Customs Code and a TARIC Code, a commodity code is a standardised numerical code used to classify goods for international trade and are required to be declared on formal export and import customs declarations when exporting and importing goods around the world.

Common Commodity Code Databases

The UK Trade Tariff Database can be found here
The EU Trade Tariff Database can be found here
The US Trade Tariff Database can be found here

Tip: It can be helpful to include two commodity codes on the shipment paperwork in cases where a code for certain goods may differ slightly between the exporting and importing customs territory respectively.

Determining Import Duties and VAT: The code determines the import tax rates including VAT and Duty that will be applied to goods. Using the correct code helps to ensure you pay the right amount of tax and avoid underpayments, overpayments and are compliantly declaring your goods to customs.

Trade Statistics: Governments use these codes to track trade data, monitor imports and exports, and maintain economic statistics.

Compliance with Trade Regulations: Correct classification helps businesses comply with import/export regulations, including licensing requirements, product standards, and safety checks.

Facilitating Customs Clearances: Proper use of commodity codes simplifies customs procedures, minimising delays at the border.

Commodity codes can vary slightly according to the customs territory and usually there will be a public database where codes can be checked, and the UK commodity code database can be found here.

A full commodity code is 10 digits long. Generally the first 6 digits of the code are universal and then the subsequent 2 or 4 digits are more likely to vary. For exporting goods only the first 8 digits are required, for importing goods all 10 digits are required.

Each code can be subdivided into clusters of 2 digits (called chapters or sections) with each of these subsections representating an evermore specific classification of the goods.

A ‘walking’ example
The 8-digit commodity code for exporting hand-made walking stick is 66020000.
The 10-digit commodity code for importing a hand-made walking stick is 6602000010.

If we break the 10-digit code down, we are left with the four subsections being 66/02/00/00/10.

66 = Umbrellas, sun umbrellas, walking sticks, seat-sticks, whips, riding-crops and parts thereof
02 = Walking sticks, seat-sticks, whips, riding-crops and the like
00 =
00 =
10 = Hande-made

You can also view the code 6602000010 on the UK database here.

Using the gov.uk website and the commodity code for walking sticks when importing in to the UK:

• You know that the commodity code for importing hand-made walking sticks is 6602000010, and you know the value against that particular commodity code is £5,000 GBP
• The gov.uk website states that when importing these goods from outside the EU, they are subject to a third country duty rate which is 2% VAT at the standard rate of 20%
• If you would like a more detailed calculation, please refer to our guidance on UK import taxes

Import VAT	=	20%	of	£5,000	=	£1,000
Import Duty	=	2%	of	£5,000	=	£100
Approx total due to HMRC						£1,100

Misclassification: Using the wrong code can lead to incorrect duty payments, delays, and even penalties. It’s crucial to classify goods accurately to avoid issues with customs.

Product complexity: Some products, like multi-component items or high-tech goods, may be difficult to classify correctly.

Changes to commodity codes: Commodity codes are updated periodically, so it’s important to stay current to ensure compliance. When a commodity code itself it adjusted, usually it is just the last two or four digits, but it can still catch people out.

Changes to tax rates and other export/import requirements:

At Unity Logistics, whilst we are happy to help people check for a potential commodity code we are not positioned to be able to confirm and determine them on their behalf.

Usually the best starting place would be to ask your supplier for their suggestion based on their knowledge and experience and then cross check their suggestion against the database.

In the UK you can also ask HMRC for help classifying your goods. The advice is non-legally binding and they aim to reply within 5 working days.

In complex cases, it may require professional advice or a Binding Tariff Information (BTI) ruling. You can find more information on binding tariffs on both the Gov.uk and the European Commision’s website.

Although binding tariffs are not legally required, they are intended as an available tool to help any person obtain the correct tariff classification of the goods they intend to export or import. While there are costs associated with an application process, the main benefit of a binding tariff is that a commodity code can be identified with legal certainty.

Diclaimer: The information provided on this website is for general informational purposes only and should not be considered professional advice. While we strive to ensure the accuracy and relevance of the information, Unity Logistics does not guarantee its completeness, reliability, or suitability for any specific purpose. Users should consult with qualified professionals before making decisions based on the content found on this website. Unity Logistics disclaims any liability for actions taken based on the information presented here.