Skip to content

EU Harmonized Tariff Classification: Repeal of Regulation 761/2014

HS Classification 7 min read
EU Harmonized Tariff Classification: Repeal of Regulation 761/2014

Quick answer

The repeal of Commission Implementing Regulation (EU) No 761/2014 by Regulation (EU) 2023/2 affects the classification of certain cosmetic products under the Combined Nomenclature (CN). EU businesses must update their harmonized tariff classification accordingly to maintain compliance with EU customs rules [1].

DClassify your goods — free, no sign-up to try.

Key takeaways

  • Commission Implementing Regulation (EU) 2023/2 repeals Regulation (EU) No 761/2014, changing the classification of some cosmetic products, notably shampoo gels [1:1].
  • The repeal aligns EU tariff classification with the World Customs Organisation (WCO) Harmonized System Committee (HSC) classification opinion 3305.10/5 [1:2].
  • The updated classification places such products under CN code 3305 10 00, reflecting HS heading 3305 and Chapter 34 notes [1:3].
  • EU importers and exporters must revise their customs declarations and documentation to reflect the new classification.
  • Deadlines for compliance depend on the relevant Member State authorities but should be addressed promptly to avoid customs delays or penalties.

What is Harmonized Tariff Classification and Why it Matters for EU Businesses

Harmonized tariff classification is the process of assigning a specific code to goods based on the Harmonized System (HS) nomenclature, which is an internationally standardized system for classifying traded products. Within the EU, this classification is reflected in the Combined Nomenclature (CN), which integrates the HS codes with EU-specific subdivisions and tariff measures.

For EU businesses, accurate harmonized tariff classification is critical because it determines the applicable customs duties, import restrictions, and statistical reporting obligations. Misclassification can lead to incorrect duty payments, customs clearance delays, and potential penalties imposed by the relevant national competent authorities. Therefore, maintaining up-to-date knowledge of classification rules and changes is essential for compliance and cost management in cross-border trade within and beyond the EU single market.

The repeal of Regulation (EU) No 761/2014 and the adoption of Regulation (EU) 2023/2 illustrate the dynamic nature of harmonized tariff classification and the importance for EU businesses to monitor regulatory updates [1:4].

Impact of Commission Implementing Regulation (EU) 2023/2 on Your Products

Commission Implementing Regulation (EU) 2023/2 of 21 December 2022 repeals Implementing Regulation (EU) No 761/2014, which previously governed the classification of certain goods, including a specific shampoo gel preparation [1:5]. This repeal is based on the Harmonized System Committee (HSC) of the World Customs Organisation (WCO) approving classification opinion 3305.10/5 during its 69th session in March 2022.

The classification opinion clarified that shampoo gels containing water, organic surface-active agents, glycerin, plant extracts, and other ingredients, packaged for retail sale, should be classified under HS heading 3305, specifically HS subheading 3305 10, corresponding to CN code 3305 10 00. This classification is supported by note 1© to Chapter 34 of the HS, which excludes such products from Chapter 34 and directs their classification under headings 3305, 3306, or 3307 [1:6].

For EU businesses, this means that products previously classified under the now-repealed Regulation (EU) No 761/2014 must be reclassified according to the updated guidance. This reclassification can affect customs duty rates, import procedures, and compliance documentation. Businesses importing or exporting these products should review their customs declarations and ensure they reflect the CN code 3305 10 00 to align with the current EU tariff classification [1:7].

Understanding the WCO Harmonized System Committee (HSC) Classification Opinions

The WCO Harmonized System Committee (HSC) plays a crucial role in maintaining and updating the Harmonized System nomenclature used worldwide for tariff classification. The HSC issues classification opinions that provide authoritative guidance on the proper classification of goods under the HS.

Classification opinions, such as 3305.10/5, are internationally recognized and serve as reference points for customs administrations, including those of the EU Member States. The EU, as a contracting party to the International Convention on the Harmonized Commodity Description and Coding System (Council Decision 87/369/EEC), incorporates these opinions into its tariff classification framework to ensure uniformity and consistency in customs procedures [1:8].

For EU businesses, understanding HSC classification opinions is essential because they directly influence the harmonized tariff classification applied within the EU single market. When the HSC issues an opinion that affects the classification of a product, the European Commission may adopt implementing regulations to align the EU Combined Nomenclature with the HSC’s guidance, as seen with Regulation (EU) 2023/2 [1:9].

The Role of HS Chapter Notes in EU Tariff Classification

HS Chapter Notes provide detailed rules and clarifications that guide the classification of goods within specific chapters of the Harmonized System. These notes can exclude or include certain products from particular headings, clarify the scope of headings, and establish classification criteria.

In the case of the shampoo gel product affected by the repeal of Regulation (EU) No 761/2014, note 1© to Chapter 34 of the HS was pivotal. This note excludes ‘shampoos, dentifrices, shaving creams and foams, or bath preparations, containing soap or other organic surface-active agents’ from Chapter 34 and directs their classification to headings 3305, 3306, or 3307 instead [1:10].

This exclusion means that products fitting the description of the shampoo gel are not classified under Chapter 34 but rather under Chapter 33, specifically heading 3305. The application of general rules 1 and 6 for the interpretation of the HS further supports this classification.

For EU businesses, familiarity with HS Chapter Notes is vital for accurate classification, as these notes can override general assumptions and affect the applicable customs duties and regulatory requirements. Ensuring that tariff classification aligns with the relevant chapter notes helps avoid misclassification risks [1:11].

Ensuring Compliance: Steps for EU Importers and Exporters

To remain compliant with the updated harmonized tariff classification following the repeal of Regulation (EU) No 761/2014, EU importers and exporters should take the following steps:

  1. Review Product Descriptions and Formulations: Confirm that your products, especially cosmetic preparations like shampoo gels, match the characteristics described in the HSC classification opinion 3305.10/5 and the relevant HS Chapter Notes [1:12].

  2. Update Customs Declarations: Amend customs declarations to use the correct CN code 3305 10 00 for affected products. This ensures that customs authorities apply the appropriate tariff rates and controls [1:13].

  3. Verify Supporting Documentation: Ensure that all supporting documents, including commercial invoices and product specifications, reflect the updated classification to facilitate customs clearance.

  4. Consult the Relevant National Competent Authority: Confirm deadlines and any additional national requirements related to the reclassification process with the customs authority in the Member State where your business operates.

  5. Monitor Regulatory Updates: Keep abreast of further changes to the Combined Nomenclature and WCO classification opinions to maintain ongoing compliance [1:14].

Deadlines and Obligations for Reclassifying Affected Goods

While Commission Implementing Regulation (EU) 2023/2 repeals Regulation (EU) No 761/2014 as of its entry into force, the specific deadlines for applying the new classification and reclassifying affected goods depend on the implementation practices of each Member State’s customs authority.

EU businesses should act promptly to align their customs procedures with the new classification to avoid disruptions in customs clearance and potential penalties. The obligation to use the correct CN code in customs declarations is immediate once the repeal is in force.

It is advisable to consult the relevant national competent authority to confirm precise deadlines and any transitional arrangements applicable within the Member State. Timely compliance ensures smooth trade operations and adherence to EU customs law [1:15].

Next steps

  1. Identify all products in your portfolio affected by the repeal of Regulation (EU) No 761/2014, focusing on shampoo gels and similar cosmetic preparations.
  2. Confirm the correct CN code 3305 10 00 for these products based on the updated classification under Regulation (EU) 2023/2.
  3. Update your customs declarations and internal classification records to reflect the new harmonized tariff classification.
  4. Verify that all supporting documents, including invoices and product descriptions, align with the updated classification.
  5. Contact the relevant national competent authority to confirm any specific deadlines or additional requirements for reclassification.

FAQ

What is harmonized tariff classification?
Harmonized tariff classification is the process of assigning an internationally standardized code, based on the Harmonized System (HS), to goods for customs purposes. In the EU, this is reflected in the Combined Nomenclature (CN) and determines applicable duties and import/export regulations [1:16].

How do I find the HS code in the UK?
While this article focuses on the EU, generally, HS codes in the UK can be found through the UK Trade Tariff database or by consulting the UK customs authority. The UK uses a system aligned with the HS but may have specific national subdivisions.

How do I know my harmonized tariff code?
You determine your harmonized tariff code by analyzing the product’s composition, use, and description against the HS nomenclature and relevant EU Combined Nomenclature. Classification opinions by the WCO Harmonized System Committee and EU implementing regulations provide authoritative guidance [1:17].

What are the 4 types of tariffs?
The four common types of tariffs are ad valorem tariffs (percentage of value), specific tariffs (fixed amount per quantity), compound tariffs (combination of ad valorem and specific), and tariff rate quotas (allowing a quantity at a lower rate). This article focuses on classification rather than tariff types.

Sources

  1. Commission Implementing Regulation (EU) 2023/2 of 21 December 2022 repealing Implementing Regulation (EU) No 761/2014 concerning the classification of certain goods in the Combined Nomenclature

Need the commodity code for your goods?

The HS Code Classifier takes a plain description of your product and returns the HS6, CN8 and TARIC code, with the reasoning behind each digit.

Classify your goods → Or look up the duty rate →

Read next