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Commodity codes

Overview

Commodity codes, also known as harmonised system (HS) codes or tariff codes, are standardised numerical codes used to classify and categorise products or commodities for international trade and regulatory purposes. These codes help customs authorities, businesses, and organisations around the world to identify and categorise goods, facilitating the movement of products across borders. Commodity codes are essential for regulatory compliance. They help ensure that products are classified correctly according to trade agreements and regulations.

The codes consist of a series of digits that represent various levels of product categorisation. For example, a 6-digit HS code provides a broad classification, while an 8-digit code provides more specificity. Each code is associated with a specific product or group of similar products.

When products are imported or exported, customs declarations and shipping documents include the appropriate commodity codes. These codes are used by customs authorities to determine duties, taxes, and import/export restrictions.

D365 Setup

In Microsoft Dynamics 365 Supply Chain Management (D365SCM), you can set up and use commodity codes to streamline international trade processes.

The commodity codes are created by setting up a category hierarchy (this is detailed in a previous survey question) with all the required codes. In this example, a category hierarchy called Intrastat has been created, and Projector type products have a commodity code of 9002233:

The main difference with this category hierarchy is that it needs a Category hierarchy role association of type Commodity code hierarchy.

Now that the commodity codes have been created, they would typically be applied to the released product via the Foreign trade FastTab or alternatively, through the procurement catergory hiearchy that is assigned to the product: