What is a commodity code and why does it matter in European freight?

A commodity code is the numeric classification assigned to goods under the EU Combined Nomenclature — 8 digits for EU exports, 10 digits for EU imports. The commodity code determines the duty rate, any applicable restrictions or licensing requirements, and VAT treatment at the border. An incorrect commodity code results in wrong duty assessment, potential penalties, and possible goods detention while the correct classification is established.

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Customs and Trade Terms in European Freight