Product Classification

Product classification is a means for you to provide an item-based classification for your products and to associate this itemization with a product classification code.

HS and CN codes are standard codes that are used to identify item classifications in the EU.

Harmonized Commodity Description and Coding System (HS) codes are an international standard used by over 200 countries. HS codes use 6 digits to represent goods.

Combined Nomenclature (CN) codes are used by the European Union. CN codes use 8 digits. The first 6 are the same as the HS code and the final 2 are unique to the CN code.

This tool generates an 11 digit code. This includes the 6 digits from the HS code, the 2 digits from the CN code and 3 more digits.

Taxamo uses this code for tax calculations.

After you create an item classification, you need to send the product code to Taxamo. To do so, you can add the product_cn_code field to your requests.

Classifying a Product

To classify a product, complete the following steps:

  1. Log in to the dashboard and click PRODUCT CLASSIFICATION from the sidebar panel.

  2. Enter a product classification in the Product description field.
    For example:

Product Description UI - Multiple ItemsProduct Description UI - Multiple Items

Product Description UI - Multiple Items

  1. Classify the product.
    After you enter the description, the system displays a choice of items. Choose the radio button for the one that best fits your product (‘Footwear’ in this example) and click OK.
Item SelectionItem Selection

Item Selection

  1. Select additional descriptions or attributes.
    After you choose the item classification, you need to choose any additional descriptions or attributes. In this example, you choose Uppers.
Additional AttributesAdditional Attributes

Additional Attributes

  1. Select the appropriate product classification code.
    After you choose the appropriate item and subitem classification, the system presents you with a choice of possible matches to existing codes.
    To select a code, click on it and click OK.
Code SelectionCode Selection

Code Selection

To review the classification that you specified and the ones that the system automatically assigns, click the Review classification icon:

HS Code AssignmentHS Code Assignment

HS Code Assignment

To view the classification, expand the nodes for the related item:

Classification ReviewClassification Review

Classification Review

  1. Confirm your choice.
    After you choose the code that you want to associate with this item classification, click Confirm {Code} to finish the process.
Confirm HS CodeConfirm HS Code

Confirm HS Code

Result
The system displays the associated product classification code and you can choose to classify another product. You need to send this code to Taxamo.

After you create an item classification, you need to send the product code to Taxamo. To do so, you add the product_cn_code attribute to your requests. For example, you add the following code in the JSON of a Transaction request:

"transaction": {

    "currency_code": "EUR",
    "buyer_name": "Kate Smith",
    "ship_to_address": {
      "street_name": "1 Main Street",
      "address_detail": "City West",
      "city": "Dublin",
      "postal_code": "PT1 2345",
      "country_code": "IE"
    },

    "transaction_lines": [
      {
        "product_class": "P",
        "quantity": 1,
        "description": "Coat",
        "amount": "62.99",
        "custom_id": "51315A00-DC44-408E-A575-8CE42A32AE1B",
        "ship_from_address": {
          "country_code": "CN"
        },
        "product_cn_code": "08100000000"
      }

Product Classification Tool

Taxamo use 3CE Technologies services for product classification.



If you need further help, contact support at https://www.vertexinc.com/en-gb/support-services/taxamo-customer-support.

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