On import the legal consequences follow from the numeric code of the goods, not their name: the duty rate, certification and any relief depend on it.
What is a commodity nomenclature code?
The code comes from Azerbaijan's commodity nomenclature for foreign economic activity, a national extension of the World Customs Organization's Harmonised System.
- the four-digit level gives the heading, the six-digit level the subheading
- in Azerbaijan the code has ten digits, the last of them national detail
- the nomenclature and duty rates are set by legislation and updated periodically
What does the code affect?
Every calculation starts from the code, so it is clarified first when drawing up a customs declaration. The code determines:
- the type of duty (ad valorem, specific or compound) and the unit of assessment
- whether the goods fall within the lists granting VAT relief on import
- the certificates required under veterinary, phytosanitary and sanitary control
- tariff relief, preferences and quotas, and any prohibitions or restrictions
On what grounds is the code selected?
The six general rules of interpretation apply in order: first the terms of the heading together with the relative section and chapter notes, and only then the subheading. In practice the choice turns on:
- the material and composition of the goods
- their function, intended use and operating principle
- the degree of processing or completion
- presentation in an incomplete or unfinished, disassembled or unassembled state
- being put up as a set for retail sale
What does an incorrect code lead to?
- additional assessment of customs payments and VAT
- goods withheld from release because a permit document is missing
- the loss of relief or a preference to which you are entitled
- administrative liability for incorrect declaration
What can be done if the code is disputed?
Before the transaction you may request an advance classification decision for the goods; it is binding on the customs authorities.
- where the composition is unclear, customs examination and a laboratory report apply
- a technical data sheet, specification and manufacturer's letter support the position
- the nomenclature and the procedure for requesting an advance decision are on the customs portal
- obtaining certificates and permits is planned around what the code requires
The final assessment lies with the customs authority, but documents can support your position. Send us the technical documentation and the invoice: we will assess the headings and handle the preparation of import and export documents.
Still have a question?
Get in touch to discuss your specific customs clearance situation — our team will explain it within the framework of the law.
