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Frequently Asked Questions


A: HS stands for Harmonized Commodity Description and Coding System. The HS is the international standard for reporting goods to customs and other government agencies. It is a numeric language that is used by more than 180 countries worldwide, and almost 100% of international trade. The HS was created and is administered by the Brussels-based World Customs Organization (WCO).
A: HS codes are essentially the language of international trade. They are the numerical codes that describe "what" is being shipped to and from countries worldwide, and they form the basis upon which all modern customs management systems operate. The first 6 digits of the HS are used universally. Each country may then add to the original 6 to suit its own tariff and statistical needs, creating 8, 10, and sometimes 12 digit national codes.
A: HS classification is the process of assigning numerical HS codes to products for import or export.
A: Importers and exporters are legally required to declare their products to Customs by means of HS codes. HS classification determines a product's rate of duty, its import and export admissibility, and whether or not it should be physically examined. In some countries, importers are required to report HS codes to Customs before their products are loaded for export. In the United States, this mandatory advanced cargo reporting program is called "ISF", or "10+2" (an explanation of ISF / 10+2 is provided below).
A: HS codes are used by companies to comply with trade regulations, to calculate the true and total landed cost of imported articles and components, to identify selling and sourcing opportunities abroad, and to link the procurement and compliance elements of the supply chain.
A: HS classification is extremely difficult. Several government studies have shown that 30-50% of all Customs entries are misclassified (depending on the industry examined).
A: Yes, they can and do get revised. With the thousands of codes available staying on top of revisions is essential.
A: Improper classification can mean loss of profits, penalties, or worse. Most governments apply some form of monetary penalty for classification errors. In the United States, penalties are assessed based on Customs' determination of negligence, gross negligence or fraud. For the most benign kind of classification error, US Customs and Border Protection will assess a civil penalty amounting to either: 1. the lesser of - 1. the domestic value of the merchandise, or 2. two times the lawful duties, taxes, and fees of which the United States is or may be deprived, or 2. if the violation did not affect the assessment of duties, 20 percent of the dutiable value of the merchandise.
A: In most countries, the importer of record is solely responsible for the accuracy of the HS codes declared to customs. Many companies rely entirely on third party experts for HS classification, but this does not relieve them of liabilities associated with commodity reporting errors.
A: HS classification is difficult for two main reasons. First, the HS itself is very complex. Product descriptions are distributed among more than 5,000 headings and subheadings. The HS also contains section and chapter notes, which must be consulted in order to assign a proper HS code. Finally, classification is governed by a strict set of rules called the "General Rules of Interpretation" (GRI). It is hardly surprising then, that the average national tariff schedule is more than 2,000 pages. Second, product descriptions in the HS do not usually match everyday product descriptions. For example, in order to properly classify an "electric toothbrush", it must somehow be matched to "Electro-mechanical domestic appliances, with self-contained electric motor, other than vacuum cleaners of heading 85.08. Other."
A. Nigeria Trade portal is a resource provided by government to traders in order to obtain from one single source i.e. website, all information that importers or exporters in Nigeria may require in order to comply with their regulatory obligations in relation to all government agencies that control export, import or transit business.
A. The duty calculator has been provided to aid a trader to calculate the specific amount of duty, levy and taxes payable on an importation. It is simple and user friendly, but for further support on how it is used, you can make use of the live chat support services provided on the portal.
A. C.I.F is an acronym for Cost (F.O.B amount), Insurance and Freight. This is the amount used for calculation of duty in Nigeria.
A. the Free On Board (F.O.B) amount includes the cost of production of items and the cost of transportation to the port of loading for exportation.
A. the site map has been provided to help traders and other users navigate the Nigeria trade hub with ease.
A. Controlling or Regulatory agencies are Ministries, Department and Agencies responsible for ensuring that traders comply with the regulations, laws and procedures required for import or export in Nigeria. Examples of these are Standard Organization of Nigeria (SON), NAFDAC, NESREA etc.
A. Click on the yellow “C” sign beside the item tariff code on the final page when using the classification tool to find out the agency responsible for controlling the item for importation.
A. When a product is prohibited for importation a red “P” sign appears on besides the tariff code of that item when classifying. Click on the red “P” sign beside the item tariff code on the final page when using the classification tool to find out the prohibition status of the item for importation.
A. A Customs Procedure Code (CPC) is used for both imports and exports to identify the nature of the movement of the goods. It is made up of three pairs of numbers and each pair identifies the applied procedure, the previous procedure (if applicable) and further classifies the nature of the movement
A. When importing the CPC describes the purpose of your shipment and informs Customs about the duty to be paid on the goods, whether it is to be: i. taken as a deposit, to be repaid when goods are re-exported ii. suspended completely because of a duty relief scheme iii. brought to account straightaway For example are the goods coming in as samples, either to elicit orders or for you to inspect for its quality, finish etc., before giving the go-ahead for full importation of the product? Certain samples can get a relief on duty and VAT and there are CPCs to cover this
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