Why is the HS Code (Harmonized System Code) Important and How is it Determined?

The GTIP code is used by customs authorities worldwide to classify products in international trade and consists of at least six digits. In this way, customs duties (customs charges) can be calculated correctly and any required restrictions can be applied. In short, the GTIP code provides detailed information about the transported goods and, accordingly, determines the precautions to be taken during transportation and the taxes to be applied. In addition, it is advisable to seek support from an expert customs broker when declaring customs tariffs.

If the GTIP code is not added to the commercial invoice and other shipping documents, there is a risk that the buyer will pay incorrect taxes, and the delivery of the shipment to the recipient will most likely be delayed.

Correctly classifying your goods using the GTIP code provides the following advantages, saving both time and cost. Proper classification allows you to:

• Pay the correct amount of customs duty and the correct amount of VAT.

• Know whether customs duties are suspended for any of your products.

• Determine whether a preferential customs duty rate can be applied.

• Identify whether consumption taxes or anti-dumping duties apply.

• Avoid paying interest on refunds due to incorrect classification.

• Prevent seizure of goods or delays in their movement.

How Is the GTIP Code Determined?

The GTIP code consists of a total of 12 digits. The first 6 digits of the Customs Tariff Schedule are the same worldwide. The first 8 digits are the same within the European Union. While the number of digits may vary by country, Türkiye is the only country that uses a 12-digit Customs Tariff Schedule.

Each country structures its tariff system according to its own needs. When creating these digits, countries primarily consider three factors: the level of product classification detail, statistical data requirements, and customs duty practices. In Türkiye, this structure is particularly detailed.

The positions of GTIP digits can be summarized as follows:

• The first 4 digits represent the product heading.

• The first 6 digits are used by countries that are members of the World Customs Organization (known as the HS Nomenclature Code).

• The 7th and 8th digits are used by European Union countries (known as the EU Combined Nomenclature Code).

• The 9th and 10th digits indicate positions opened for different tax applications (National Subheading Code).

• The 11th and 12th digits represent the Customs Tariff Statistical (GTIP) code.

Contact us for any questions regarding the GTIP code.