HS code: cost of mistakes in customs clearance

Every imported or exported product is classified by a 10-digit HS code (TN VED in EAEU). The code defines the duty rate, certification requirements and applicable non-tariff measures. A wrong code is a real risk.

What a wrong code costs

• Duty and VAT reassessment for the entire understatement period.
• Fine of 50–200% of the underpayment (Russian Administrative Code, Article 16.2).
• Cargo delay until corrected paperwork is issued.
• In some cases — cargo seizure.

How we pick the code

1. We study the technical specifications and composition.
2. We apply the HS interpretation rules (GIR 1–6).
3. We check FCS clarifications, EEC opinions and case law.
4. For disputed cases — we request a Preliminary Classification Decision (PCD) in advance.

What to do if FCS disagrees

The inspector can issue a classification decision (KTT) with a different code. The procedure:

1. We request the basis: which acts and expert opinions led to the decision.
2. We prepare objections with an independent expert organisation.
3. If still disputed — appeal to the higher customs authority or court.