Commodity Codes Explained
EORI Numbers Explained
October 1, 2020Incoterms Explained
October 3, 2020Once you have established your EORI company identification number(s) you will need to understand your commodity codes.
This article explains what commodity codes are, why you need them and what you need to do.
What are Commodity Codes?
Like EORI numbers identify your company, commodity codes identify your products to customs authorities. A commodity code is a 10 digit number.
Commodity codes can also be referred to as:
Tariff headings;
Tariff codes;
Taric codes; or
HS codes
These are all the same thing!
Why do You Need Commodity Codes?
Commodity codes are necessary to ensure you declare the correct goods so you don’t over (or under) pay your taxes
What do you Need to do to Prepare?
Start by identifying the correct commodity codes for each and every one of your products.
Search commodity codes (Ireland)
Finding the right code isn’t always easy. Always ask the relevant tax authority for advice on classifying your goods if you are unsure!
Once you have your commodity codes you should determine the level of VAT and if any import or export licences are required.
Generally, staple items are not subject to VAT but luxury items are. For example, most milk is VAT free but if you process it into ice cream it is subject to VAT because it is classed as a luxury item. However, there are exceptions to this rule so always check and do not assume.
UK VAT rates can be ascertained here.
Irish VAT rates can be ascertained here.
Import or export licences may be required. Again you should seek the correct information on this. Use these websites to find out if you require a licence:
Identifying your commodity codes is just one step in your customs preparations. You will need a customs agent. If you have any questions relating to commodity codes, speak to the McCulla Ireland customs team today. Find out more about our Customs Clearance Service here.