TARIC

What it means

TARIC is the integrated tariff of the European Union. It is a database that assigns a ten-digit code to every type of goods and lists all the measures applying to it on import into and export from the EU: duty rates, anti-dumping duties, quotas, preferential rates, prohibitions and restrictions.

The first eight digits are the Combined Nomenclature, which is also used in Intrastat statistics. TARIC adds two further digits for measures that apply only to certain countries of origin or special situations.

The correct TARIC code is the basis of the customs declaration. It determines how much duty the company pays, whether it can claim a preference under a free trade agreement, and whether the goods need a licence, certificate or other authorisation.

How it works in practice

For newly imported goods we first determine the code with the client based on the technical description, material and use. Where there is doubt, we recommend applying to customs for a binding tariff information decision, which gives certainty for several years.

For goods originating in countries that have an agreement with the EU, we check whether preferential origin and a lower rate can be claimed. A proof of origin and compliance with the origin rules of the specific agreement are needed.

Codes and rates change, especially with anti-dumping measures and sanctions. For regular imports we therefore check whether a new measure applies to the goods before it shows up in the customs declaration at release for free circulation.

What to watch out for

Wrong tariff classification is the most common reason for additional duty after an audit. Customs can review imports retrospectively for several years and assess the difference in duty and VAT with interest.

The code is determined by the importer, not the supplier. The code on a foreign seller’s invoice is only a pointer and may be wrong, because non-EU countries use different national codes. The declarant is responsible for accuracy.