Customs tariff / Customs tariff number

The customs tariff number and tariff items of imported goods arriving at the customs border of a state are included in the commercial customs tariff. This shows the manner and extent of their customs duties.

States summarize their customs measures in customs legislation, customs tariffs and rules of origin. It affects the transparency of customs tariffs, 

• how each state lists dutiable (and duty-free) goods, 
• whether distinctions are made according to country of origin, 
• to what characteristics of the goods and 
• how much duty is charged. 

When structuring their trade customs tariffs, individual states (about 200 states) use the so-called Harmonized Commodity Classification System (HS) of the WCO (World Customs Organization), which classifies goods participating in world trade into 21 commodity classes, and uses further breakdowns of up to 6 digits. The goods classification order of the customs tariff is given by the logical sequence of animal, vegetable and mineral materials and the products produced from them. HS is a common language that offers the opportunity to navigate the customs tariffs of individual states.

We can distinguish single or multi-column (column) customs tariffs. The trade tariff is single-tier if a state does not wish to apply different levels of customs duties to the same goods depending on the country of origin. In practice, we can often encounter multi-tiered customs tariffs, individual states apply differentiated customs duties according to the country of origin based on their current trade agreements and WTO membership. (These can be, for example, preferential duties, duties according to the most favoured nation principle, and maximum duties.)

In terms of customs duties, we can find ad valorem duties, which are determined as a percentage, and specific duties, in which the typical unit of measure of the goods is taxed. There are also combined duties, which are variations of the former. They can be ordinal (for example, percent or ton) or cumulative (percent and ton). In the case of ad valorem duty, the national customs legislation determines which value of the goods constitutes the basis for customs clearance, the so-called customs value. (In international trade, depending on the INCOTERMS clause stipulated in the contracts, there may be many different purchase prices for the goods, which may be modified by additional freight costs and/or sales representatives' commissions.) Most countries use the WTO Customs Value Agreement as a basis.

If we import goods, we use the domestic commercial customs tariff to calculate customs charges. In the case of export, the commercial customs tariff of the destination country informs us about the duty charged on our product. It is very important that all this information is never obtained after the deal has been concluded, but before the offer price is established (for exports) or before the price negotiation begins (for imports). (Not incidentally, there is also an INCOTERMS clause where, in addition to customs administration, the exporter undertakes to pay the import duty due in the buyer's country.)