Glossary term
Product Classification
Determining the tariff code under which goods fall, which decides duty and applicable controls.
Deciding which tariff line goods belong to. It is the first substantive step in any import or export, because duty rate, licensing, restrictions and preference eligibility all follow from it.
Classification is governed by the General Interpretative Rules and the binding section and chapter notes, applied to the goods as presented - not to what they will become or how they are marketed. Where the answer is genuinely arguable, most administrations issue binding rulings in advance, which is cheaper than being wrong across a year of shipments. See misclassification.