It also implements the gradual reduction of duty rates for products covered by the "Declaration on the Expansion of Trade in Information Technology Products" agreement, also known as the ITA agreement. The relevant part of the agreement, which specifies the reductions to be implemented by 2023, can be found on the World Trade Organization's website. The CN codes introduced throughout 2022 can also be found on the European Union's EUR-Lex website.
What is the Combined Nomenclature, and why is it essential?
The Combined Nomenclature (CN) is a standardised system for classifying goods in the European Union (EU). It is used to determine the applicable customs duties and taxes on imported and exported goods. The CN consists of a hierarchical system of codes assigned to specific goods based on their nature and characteristics. Each code corresponds to a specific duty rate and statistical treatment, which helps to ensure that goods are taxed and treated consistently across the EU.
The CN is essential for companies in the EU, as it determines the applicable duties and taxes on the goods they import, export, or trade within the EU. It is also used to collect statistical data on trade flows within the EU. Companies should ensure that they are familiar with the CN and use the correct codes when declaring their goods to customs authorities, as this can affect the duties and taxes they must pay.
What companies should do, and how we can support that
Using the wrong codes can lead to delays and fines or paying too much or too little duties. Supply chains are confronted with enough disruptions, so companies should ensure they prevent avoidable delays and issues.
The update of the Combined Nomenclature can impact the amount of duty you have to pay for your products. Existing codes may have to be changed, or codes may need to be updated with newly issued CN codes.
Check what changes have been made to the Combined Nomenclature and how those changes impact any of your products or services. If you need clarification or have any questions about the classification of your goods, you can contact one of our specialists. They are highly experienced and always entirely up to date with the latest developments
