The importance of getting commodity codes right

Applying the right commodity code to goods being shipped globally not only determines how much VAT and duty there is to be paid on arrival but also if there are particular import controls for items being shipped, such as a need for special licenses.

As global eCommerce and cross-border logistics continue to accelerate, the humble shipping label is doing a lot more than guiding a box from A to B. It’s becoming a customs compliance document in its own right. This transformation hinges on accurately using HS and TARIC codes. They aren’t just bureaucratic tags, they are legal, logistical, and operational necessities. And if they’re missing or incorrect, they can cause delays, penalties, or even seizures of goods at customs.

Many businesses still underestimate the importance of accurate product classification. Using the wrong codes could:

• lead to customs delays, perhaps indefinitely, or even the rejection of goods
• result in paying too much or too little customs duties
• damage trust and reputation with customers, potentially giving your competitors an upper hand
• risk the payment of fines or other penalties
• slow up supply chain operations 

Classifying goods with the right code, when there are many thousands to choose from, can be challenging but, for eCommerce and logistics providers, getting it wrong can create a bottleneck where speed, cost, reputation and reliability are all at stake.

At this intersection of complexity and scale, technology becomes the key enabler. TSC Auto ID printers and Bluebird’s S Series mobile terminals are bridging this gap by supporting dynamic, real-time printing of TARIC and HS codes directly onto shipping labels, either as visible data or 1D barcodes.

These codes can be printed inline on the main shipping label or separately as a customs ticket, scanned and tracked independently. The S20 terminal enables fast verification and scanning of these codes, ensuring compliance before packages leave the warehouse

A Bluebird device can scan a box label displaying not just origin, destination, and weight but also compliance-critical HS and TARIC codes, verified and ready for customs. It’s a seamless experience that, while it starts with the label, it delivers real value far beyond it.

With growing EU scrutiny, tighter customs processes, rising international trade — not to mention new tariffs — TARIC and HS codes will remain relevant and essential for the long haul. The 6-digit HS numbers are used by more than 200 countries and are identical in all with member countries adding their own digits to specify products according to national needs. Businesses that prioritise code accuracy today are building faster, smarter, more resilient operations tomorrow. Integrating TARIC management into your shipping workflow helps you:

• Minimise customs risk
• Avoid regulatory penalties
• Improve customer satisfaction with faster, smoother deliveries
• Scale across borders with confidence

Tariff codes are essential tools in international trade and TSC can help you take the guesswork out of compliance labelling and help you expedite your customs clearance process.