Tariffs
Tariff Classification
The process of assigning the correct tariff code to a product within a country's tariff schedule, determining applicable duties and regulations.
What is Tariff Classification?
Tariff classification is the technical process of determining the correct tariff code for merchandise within a country's tariff schedule (TIGIE in Mexico, HTS in the U.S.). This classification is critical because it determines applicable duty rates, non-tariff regulations, and eligibility for preferential rates under trade agreements.
Classification steps
- Identify the nature, composition, and use of the goods
- Apply the 6 General Rules of Interpretation (GRI)
- Consult section, chapter, and subheading notes
- Determine the HS subheading (6 digits)
- Identify the national-level code (8 digits Mexico, 10 digits U.S.)
Misclassification risk
Incorrect classification can result in overpayment or underpayment of duties, CBP penalties, customs delays, and loss of trade agreement preferences.
Examples
- A product combining metal and plastic is classified by the material giving it its essential character (GRI Rule 3b).
- A customs brokerage uses AI to classify 500 products in minutes, compared to weeks of manual work.
Classify with TariffPro
Learn more→Related terms
Tariffs
Tariff Classification Code
An 8 or 10-digit numerical code that identifies a specific product within Mexico's tariff schedule (TIGIE), determining applicable duties and regulations.
TariffsTIGIE (Mexico Tariff Schedule)
Mexico's official tariff schedule containing all tariff classification codes, descriptions, and duty rates for imported and exported goods.
TariffsGeneral Rules of Interpretation (GRI)
A set of 6 hierarchical rules established by the WCO that determine how to classify goods when their classification is not immediately clear from the tariff nomenclature.
TariffsHarmonized System (HS)
An international 6-digit nomenclature developed by the WCO for classifying goods in international trade, used by over 200 countries worldwide.
TariffsAd Valorem Tariff
An import duty calculated as a percentage of the customs value of goods. It is the most common type of tariff in international trade.
