The Combined Nomenclature (CN), defined at the European level, consists of 8 digits. The first six digits correspond to the Harmonized System (HS), which is used globally for the classification of goods. The two additional digits are specific to the European Union (EU) and allow for a more precise distinction of products for tariff and statistical reasons.
The CN is crucial for several reasons. First, it determines the customs duties on imports into the EU, ensuring that tariffs are applied in a consistent and fair manner. It also allows for tracking and analyzing trade flows by providing detailed data for the compilation of foreign trade statistics. These statistics are essential for policy makers and businesses because they offer a clear view of trade trends, volumes exchanged, and the EU’s trade partners.
In addition to these functions, the CN plays a role in implementing trade policy measures, such as quotas, tariff suspensions, and anti-dumping duties. It is also used for security and public health requirements, such as sanitary or phytosanitary formalities, and to enforce prohibition or embargo measures. Furthermore, it is essential for the common agricultural policy (CAP) and internal taxation, ensuring a uniform application of regulations across all EU member states.
