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When it comes to international trade, one of the key concepts is the customs code — the very set of numbers that can determine the fate of your shipment at the border. For some, it is a formality; for others, a complex system. In reality, however, by understanding its essence with Dragon Logistics, the customs code transforms from a “headache” into a practical tool for efficient logistics, tax calculation, and avoiding fines.
What is it?
A customs code is a unified numeric code that describes each product in the system of foreign economic activity. It is part of the Harmonized System for the description and coding of goods (HS code), used by over 200 countries worldwide. In Ukraine, this code is also called the UCC FEA (Ukrainian Classification of Goods in Foreign Economic Activity).
Each product has its own code — ranging from 6 to 10 digits. For example:
- 6109.10.00.00 – knitted T-shirts;
- 8517.12.00.00 – mobile phones;
- 9403.60.90.00 – other wooden furniture.
Thanks to this code, customs authorities can quickly determine what exactly is being transported, which customs duties apply, and whether permits, certificates, or other documents are required.
The structure of the numeric code is hierarchical. The first 6 digits are the international HS code. They are the same in all countries participating in international trade. The next 2–4 digits are national subcategories. They specify the product for a particular country. It is similar to an “address” for your goods in the global trade system. For example, the code 8517.12.00.00 indicates that the product belongs to electronics, specifically mobile phones, and in Ukraine it is subject to VAT but not customs duty.
Why it is needed in practice
The numeric code is required in many cases, including:
- calculation of customs payments – the correct identifier determines which duties, excise, or VAT must be paid upon import;
- proper document preparation – invoices, packing lists, and cargo declarations must include the correct code;
- certification checks – some products require mandatory certification or permits. Without the correct code, customs will not know whether additional documents are necessary.
The code is also required when applying customs benefits. For example, when importing under free trade agreements (such as with the EU), the customs code is key to exemption from duties.
Incorrect identifier: consequences
This is one of the most common mistakes made by importers. It can lead to:
- fines;
- additional inspections;
- shipment delays at customs;
- unexpected costs (for example, if the listed code carries a higher duty rate or requires a certificate).
In addition, customs authorities have the right to change the code themselves if they consider it incorrect. In this case, you not only pay the difference in taxes but also risk being placed under increased control.
To find the correct customs code, you can use online classifiers, for example, through the website of the State Customs Service of Ukraine or international resources. You can also ask a logistics company, for instance, one that provides “turnkey” delivery from China. Another option is to request an official code determination from customs. This is a paid service but provides legal protection in case of disputes.
The customs code is your guide in the system of international trade. Choosing it correctly ensures fast customs clearance, minimizes costs, and avoids unpleasant surprises.
If you plan to import or export goods, especially from China, it is advisable not to take risks and to consult with specialists. Companies providing “turnkey” logistics, such as Dragon Logistics, will help you do everything correctly.