The Combined Nomenclature is a list that serves to determine the tariff and non-tariff measures, i.e. the appropriate rate of VAT, duty, excise duty, required for the proper execution of customs procedures. The Combined Nomenclature code defines the category of a given good. It allows goods to be classified in international trade, creating a system for their identification. The term “CN codes” is used as shorthand. This commodity classification is only used within the European Union – it was introduced in 1987 when the EU implemented the Common Customs Tariff. The CN codes are based on the Harmonized System (HS), also known as the Harmonized Commodity Description and Coding System. It was developed by the World Customs Organization and is in use in more than 200 countries worldwide. An HS code consists of six digits, while an CN code has eight digits. As new goods are regularly introduced to the market, an updated version of the Combined Nomenclature (commodity classification) valid for the following year is published in the Official Journal of the European Union each year by 31 October at the latest, and is available in all EU languages. This allows customs agents to identify the correct CN code for goods to be subjected to customs procedures.
Commodity classification in Poland
In Poland, the CN code for goods has been in force since 1 July 2020, at which time legislative amendments changed the way products and services are identified. The use of PKWiU 2008 was abandoned in favor of the EU Combined Nomenclature for goods and the Polish Classification of Goods and Services PKWiU (2015) for services. The intent was to unify the rules for classifying assortments for customs and tax purposes. To locate CN codes, one has to search for a specific product in the EU TARIC (Integrated Tariff of the European Communities) tariff system. The classification of goods is easy to use and is available in Polish. The Polish tariff system ISZTAR (Integrated Tariff Information System) can also be used. It contains additional information on VAT and excise duties. Polish companies are obliged to use the Combined Nomenclature, but do not have to include CN codes on VAT invoices. Supervision of the Combined Nomenclature is exercised by the European Commission.