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
Understanding Commodity Codes
A commodity code is a numerical classification used to identify goods when importing or exporting. It tells customs authorities what the goods are, so the correct Customs Duty, VAT, and any licensing requirements or restrictions can be applied. Commodity codes are also known as HS (Harmonised System) codes or tariff codes.
The commodity code determines how much duty and VAT you pay when importing goods, and whether any restrictions, licences, or controls apply. Using the correct code ensures accurate charges, smooth customs clearance, and access to any preferential duty rates available under trade agreements. Using the wrong code can result in delays, additional charges, or penalties.
The global Harmonised System is maintained by the World Customs Organization (WCO). Each country then applies its own extensions. In the UK, commodity codes are administered under the UK Customs Declaration Service (CDS) tariff, managed by HMRC.
Yes. Every item on a commercial invoice must have a commodity code for customs clearance. This applies to all international shipments — exports and imports — regardless of value, size, or transport mode.
No. Commodity codes are only required for international shipments that pass through customs.
Structure & Format
UK import commodity codes are typically 10 digits long. Export commodity codes are often 8 digits. The first 6 digits follow the international Harmonised System standard, while the remaining digits are UK-specific extensions that provide more granular classification.
The first 2 digits identify the chapter (broad product category). The next 2 identify the heading (more specific group). Digits 5 and 6 identify the subheading. The remaining digits are national extensions that define the exact product for duty and reporting purposes.
The first 6 digits are standardised globally under the Harmonised System. Beyond that, each country adds its own digits. This means the same product may have the same first 6 digits everywhere but different full codes in different countries.
Yes. Since Brexit, the UK maintains its own tariff system, separate from the EU TARIC system. Always confirm codes using the UK Trade Tariff when shipping to or from the UK, not the EU database.
Finding the Correct Code
You need a clear description of the product including what it is, what it is made from, how it is used, and how it is manufactured. The more specific you are, the more accurate the classification.
You can start with a product name, but you must refine the result based on materials, function, and intended use. Generic product names often return multiple possible codes, and selecting the wrong one can cause customs problems.
Yes. The correct code depends on exact materials, manufacturing process, and intended use. For example, a plastic container and a glass container serving the same purpose will have different codes because the material differs.
Yes, but only if the goods are identical in material, characteristics, and intended use. If anything changes — different material, different function, different composition — the code must be reviewed.
Responsibility & Accuracy
The exporter or importer is legally responsible for selecting and declaring the correct commodity code. This responsibility cannot be transferred, even if a customs broker or freight forwarder assists with the process.
No. Pallet2Ship cannot assign or guarantee commodity codes. We can guide you to the correct resources — the UK Trade Tariff tool maintained by HMRC — and our team can help you understand what information is needed, but the legal responsibility for classification remains with the shipper.
A customs broker or freight forwarder may assist with classification, but the legal responsibility remains with the importer or exporter. If a broker selects an incorrect code, the liability for any resulting duty, penalties, or delays still falls on the shipper.
Customs may reclassify the goods, apply additional duties, delay clearance, or issue penalties. At the destination, incorrect codes can also cause storage charges while the shipment is held, and may affect the consignee’s ability to clear the goods.
Duties, VAT & Trade Agreements
The commodity code determines the duty rate applied to the goods. Different products attract different duty rates — some may be zero, others may be significant. You can check estimated duty using our Import Duty Calculator.
VAT is calculated based on the classification and declared value of the goods. Most imported goods into the UK attract standard 20% VAT, but some categories have reduced or zero rates depending on the commodity code.
Yes. You may overpay or underpay duty and VAT. Underpayment leads to reassessment and additional charges. Overpayment means you’ve paid more than necessary, and reclaiming the difference requires an application to HMRC.
Yes. Correct classification is essential to access reduced or zero-rate tariffs available under UK trade agreements such as the UK-EU Trade and Cooperation Agreement or other bilateral deals. If the code is wrong, preferential rates may not apply even if the goods qualify.
Yes. Certain commodity codes trigger licensing requirements or export controls — for example, dual-use goods, controlled chemicals, or strategic items. Always check whether your goods are subject to export licensing before shipping.
Commodity Codes on Your Documents
Commodity codes must appear on the Commercial Invoice for each item being shipped. When you book through Pallet2Ship, our system generates the Commercial Invoice during the booking process and requires HS codes at that stage.
Yes. Each distinct product line on the invoice must have its own commodity code. If you are shipping multiple different products, each one needs a separate code.
Your Commercial Invoice must also include a clear product description, declared value, country of origin, quantity, weight, and the relevant Incoterms.
Yes. Even samples, returned goods, and warranty replacements must be declared with correct commodity codes and values on the customs documentation.
Common Mistakes
Using generic descriptions instead of specific product details, copying codes from similar but not identical products, failing to update codes when product specifications change, and guessing codes instead of looking them up in the UK Trade Tariff.
No. Codes must match the exact product. Similar products made from different materials or used for different purposes can have completely different codes, duty rates, and restrictions.
This significantly increases the risk of delays, customs inspections, reclassification, financial penalties, and storage charges at destination. Always verify the code before shipping.
Related Classifications
A commodity code identifies what the goods are. A Customs Procedure Code identifies why the goods are being moved — for example, permanent import, temporary import, return after repair, or inward processing. Both are required on customs declarations but serve different purposes. See our CPC Codes guide.
A commodity code classifies the product. An EORI number identifies the business or individual making the customs declaration. Both are needed for international shipments but they serve entirely different functions. See our EORI guide.
Practical Considerations
Yes. Since Brexit, all UK–EU shipments require full customs declarations including commodity codes on every item. This applies to both exports from the UK and imports into the UK from the EU.
Yes. Countries such as the USA, China, Japan, and Australia enforce commodity code accuracy strictly. Incorrect codes on shipments to these destinations are more likely to trigger inspection, reclassification, or rejection.
Missing codes, incorrect codes, vague product descriptions, and failure to match the code to the exact product being shipped. These are the most common reasons shipments are held at customs.
Yes. Customs may hold or reject shipments until the correct classification and documentation are provided. During this time, storage and demurrage charges may accumulate.
Tools & Support
Yes. The official UK Trade Tariff tool is free and maintained by HMRC at gov.uk/trade-tariff.
Yes. Once you have your commodity code, you can use our Import Duty Calculator to estimate the duty and tax payable on your shipment before you book.
Yes. HMRC provides a classification service and can offer guidance if you are unsure. For complex or high-value goods, professional classification advice is recommended.
Use the UK Trade Tariff tool, consult HMRC’s classification service, or seek professional customs advice before shipping. Do not guess — incorrect codes cause delays, penalties, and additional costs that are avoidable with correct preparation.