TARIC codes: what are they and what role do they play in international trade?

TARIC (Tarif Intégré des Communautés Européennes or Integrated Tariff of the European Communities) is a coding system used by the European Union to facilitate customs management in international transactions.

Today we tell you everything you need to know about TARIC codes.

Purpose and use of TARIC codes

TARIC codes have several crucial functions in the framework of international trade:

Classification of goods:

They provide a detailed classification of products, which facilitates the identification of products, essential for the proper application of tariff duties and trade measures.

Application of Tariff Duties:

Another reason for distinguishing products by TARIC codes is to determine the tariffs to be applied to a specific product for trade transactions between 2 countries. The tariffs applicable to each product have a direct impact on import and export costs.

Trade Policy Implementation:

TARIC codes may be subject to various trade measures, such as import restrictions, quotas, licences and prohibitions; for the EU, the management of its external trade is more effective thanks to this classification and helps to protect certain economic sectors.

Trade Statistics:

These codes are necessary for the collection of accurate data on imports and exports. They allow the collection and analysis of detailed trade statistics, providing a sound basis for decision making.

Structure of the TARIC codes

This TARIC system classifies all goods that may be subject to import or export both within and outside the EU, identifying them with a specific code of up to 10 digits. Each digit has a meaning that provides details about the nature of the product, its origin or tariff treatment.

TARIC consists of the tariff nomenclature, which includes chapters, headings and subheadings, as well as the customs duties, which are the taxes applied to each of the headings and subheadings.

A TARIC code can consist of up to 10 digits, each of which provides specific information about the product:

• The first 2 digits: define the chapters and assign goods to a product category, becoming increasingly complex with the digits that follow.
• The first 4 digits: these are headings and break down the chapters into more specific subdivisions of goods.
• The first 6 digits: correspond to the International Harmonised System (HS/HS), a system used by more than 200 countries and economies, which describes the general category of the product.
• The next 2 digits: represent the combined subheading, which provides a more precise and detailed description of the product from the generic category.
• The last 2 digits: are specific to each code and are intended to describe additional measures applicable by the EU, such as specific tariffs, restrictions or licensing requirements.

Importance in International Trade

TARIC codes are essential for any company involved in international trade within the EU. They facilitate compliance with customs regulations, ensuring the correct classification of goods.

If a company is unaware of the code to which its product is subject, it can face problems and delays at customs, including financial penalties and legal obstacles.

Beyond being able to avoid problems arising from misidentification of the TARIC code, its proper use allows companies to benefit from preferential trade agreements, minimising import costs through reduced or eliminated tariffs for certain products.

How to Find Taric Codes

There are different websites that make it easy to find the Taric code you need. We share several of them with you:

Spanish Chambers of Commerce.
European Commission (click on ‘Explore the nomenclature’ and the nomenclature tree will appear).
Tax Office. (You will need a Certificate or electronic ID, it also works with a password).

Concluding remarks

TARIC codes are necessary for international transactions of goods, especially when dealing within the framework of the European Union. Their purpose is not only to establish a simple classification of goods, but they directly influence the application of tariffs, the implementation of trade policies and the collection of trade data and statistics.

Therefore, it is important that companies have well identified and differentiated the TARIC code or codes to which their products may be subject, in order to comply with the regulations and be able to benefit from significant competitive advantages, reduce tariff costs and avoid customs complications.

If you are planning to take your products across national borders, you already know what TARIC codes are, how to read them and why you need to know how to identify and apply them correctly.

Thank you for reading the article ‘TARIC CODES: WHAT ARE THEY AND WHAT ROLE DO THEY PLAY IN INTERNATIONAL TRADE’.

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[Article written by Álvaro Ramírez, Export Manager at Oftex].