Definition: The Combined Nomenclature (CN) is a tool used for the classification of goods in the European Union (EU). It is a systematic and detailed list of descriptions and codes used to identify and categorize products for customs, statistical, and other EU purposes. The CN is based on the Harmonized System (HS) which is an international nomenclature developed by the World Customs Organization. It is updated annually to reflect changes in technology, market trends, and the needs of the users. The CN is essential for businesses as it determines the customs duties, import and export restrictions, and eligibility for preferential trade agreements. Source: EIRA team Additional information: The Combined Nomenclature (CN) is a tool used for the classification of goods in the European Union (EU). It is a methodological system that provides a systematic and detailed description of all types of goods that can be traded. The CN is based on the Harmonized System (HS), an international nomenclature developed by the World Customs Organization (WCO), but it includes additional subdivisions and legal notes created by the EU to address its specific needs. The CN is used for various purposes such as customs duties, external trade statistics, internal taxes, trade negotiations, and economic research and analysis. It is a crucial element in the EU's trade policy, as it determines the tariffs and other trade measures applied to specific categories of goods. The CN is composed of numerical codes, each representing a specific category of goods. Each code is composed of eight digits: the first six are based on the HS, while the seventh and eighth digits represent subdivisions specific to the EU. The CN also includes legal notes and footnotes that provide additional information and clarification on the classification of goods. The CN is updated annually to reflect changes in technology, market trends, and the needs of the EU's trade policy. The updates are made through a democratic process involving consultations with EU member states and stakeholders, and are published in the Official Journal of the European Union. In the context of information technology, the CN is used in various IT systems related to customs and trade in the EU. These systems use the CN codes to identify and classify goods, calculate customs duties and taxes, generate trade statistics, and manage trade measures. The CN is also used in electronic data interchange (EDI) between businesses and customs authorities, and in e-commerce platforms for the classification of products. Example: 1. Import/Export Documentation: The Combined Nomenclature (CN) is used in import/export documentation to classify goods. It provides a systematic and detailed description of goods to be traded. For instance, a company exporting olive oil from Spain to Germany would use the CN code for olive oil in their export documentation. This helps customs authorities in both countries to identify the product and apply the correct tariffs and regulations. 2. Supply Chain Management: In supply chain management, the CN is used to identify and track goods throughout the supply chain. For example, a car manufacturer might use the CN codes for different car parts to manage their inventory and ensure that they have the necessary parts for production. 3. E-commerce: Online retailers use the CN to classify the products they sell. This helps them to calculate the correct VAT and customs duties for international sales. For example, a UK-based online retailer selling clothes to customers in France would use the CN code for clothes to calculate the VAT and customs duties. 4. Market Research: Businesses use the CN to conduct market research. By analyzing the import/export data associated with specific CN codes, businesses can identify trends, understand the demand for certain goods, and make informed decisions about their product offerings. 5. Regulatory Compliance: The CN is used to ensure regulatory compliance. For example, certain goods may be subject to restrictions or bans. By using the correct CN codes, businesses can ensure that they are not inadvertently violating these regulations. 6. Taxation: The CN is used to calculate taxes on goods. For example, a company importing electronics into Italy would use the CN code for electronics to determine the amount of import tax they need to pay. 7. Trade Negotiations: The CN is used in trade negotiations to identify and discuss specific categories of goods. For example, during a trade negotiation between the EU and another country, the CN codes for agricultural products might be used to discuss tariffs and quotas for these products. LOST view: OV-Customs Functional Architecture Principles Identifier: http://data.europa.eu/dr8/egovera/CombinedNomenclatureBusinessObject EIRA traceability: eira:InformationBusinessObject ABB name: egovera:CombinedNomenclatureBusinessObject EIRA concept: eira:ArchitectureBuildingBlock Last modification: 2023-08-08 dct:identifier: http://data.europa.eu/dr8/egovera/CombinedNomenclatureBusinessObject dct:title: Combined nomenclature Information