Logistics 101
Commodity Codes — What They Are and How to Confirm the Correct One
A commodity code (also known as a Harmonised System code or customs tariff code) is a numerical classification used to identify goods when importing or exporting. It tells HMRC what the goods are, so the correct Customs Duty, VAT and any licensing requirements or restrictions can be applied.
Summary
- A commodity code identifies what the goods are.
- The code is used on customs declarations and commercial documentation.
- United Kingdom import commodity codes are normally 10 digits long.
- The code determines Customs Duty, Value Added Tax (VAT) and controls or restrictions.
- If unsure, the correct code can be confirmed in the official United Kingdom Trade Tariff.
What Is a Commodity Code?
Commodity codes are part of the global Harmonised System, which is managed by the World Customs Organization to ensure consistent classification of goods internationally. In the United Kingdom, commodity codes are used under the United Kingdom CDS tariff to determine:
- The applicable Customs Duty rate
- The Value Added Tax (VAT) rate
- Whether import or export licensing requirements apply
- Any statistical reporting requirements
Why Commodity Codes Matter
Using the correct commodity code:
- Ensures accurate Customs Duty and Value Added Tax (VAT) calculation
- Helps prevent delays or holds during customs clearance
- May allow access to preferential duty rates under certain trade agreements
Using the incorrect code may result in:
- Reassessment of duty and tax
- Administrative delays
- Possible penalties
How to Confirm a Commodity Code in the United Kingdom Trade Tariff
You can confirm a commodity code using the official United Kingdom Trade Tariff:
How to search effectively:
- Search using the product name, the main material, or the function of the goods.
- Compare descriptions carefully to ensure the correct match.
- For imports, use the full 10-digit United Kingdom commodity code.
- Use the same code consistently for identical goods.
Frequently Asked Questions
about Commodity Codes
A commodity code is a numerical classification used to identify goods when importing or exporting, allowing HMRC to apply the correct Customs Duty, Value Added Tax (VAT) and any controls.
The commodity code determines the Customs Duty and Value Added Tax (VAT) payable, and whether any licensing requirements or restrictions apply. This affects both the cost and the smooth clearance of shipments.
The global Harmonised System is maintained by the World Customs Organization. The United Kingdom then applies its own national extensions under the United Kingdom Customs Declaration Service (CDS) tariff.
United Kingdom import commodity codes are usually 10 digits long. Export commodity codes are often 8 digits. The first 6 digits follow the global Harmonised System, while the remaining digits are specific to the United Kingdom tariff.
Yes. The official United Kingdom Trade Tariff tool is available at: https://www.gov.uk/trade-tariff.
HMRC may reassess the Customs Duty and Value Added Tax (VAT), delay customs clearance, or issue penalties until the classification is corrected.
A commodity code identifies what the goods are. A Customs Procedure Code identifies why the goods are being moved, such as for permanent import, return after repair, or temporary import.
Yes. The United Kingdom maintains its own tariff. Always confirm codes using the United Kingdom Trade Tariff when shipping to or from the United Kingdom.
Yes, as long as the goods are identical in material, characteristics and intended use.