Understanding HSN Codes in Luxembourg : A Comprehensive Guide

Introduction

HSN Codes, formulated by the World Customs Organization (WCO), establish a global standard for categorizing goods in trade. Luxembourg, as a European Union member state, utilizes the HSN Codes in its customs administration, aligning with the EU's Combined Nomenclature (CN) for consistent and efficient trade practices within and outside the EU.

In Luxembourg, the integration of HSN Codes into its trade system is done through the EU’s CN, which expands upon the WCO’s Harmonized System to suit the specific needs of the European Union's internal and external commerce.

Luxembourg's customs procedures are shaped by its commitment to the WCO, ensuring that it adheres to international trade classifications and contributes to the facilitation of global commerce.

The country follows the EU’s detailed CN, which extends the HSN Code to an 8-digit code, providing a granular classification of goods for customs, tax, and trade policy purposes.

The structure of HSN Codes in Luxembourg follows the EU's CN hierarchy, with a detailed system of sections, chapters, headings, and subheadings to ensure precise classification.

This classification system is based on a hierarchical structure that begins with the chapter (first 2 digits), followed by headings (next 2 digits), and subheadings (next 2 digits), with the final 2 digits representing statistical reporting numbers specific to the EU.

An example is the classification of pharmaceutical products, which are significant in Luxembourg’s trade. The CN code for medicaments of mixed or unmixed products, for retail sale is 3004.90.00:

Chapter (30): This chapter is dedicated to pharmaceutical products.

Heading (04): This heading addresses medicaments (excluding goods of heading 3002, 3005, or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses.

CN Supplementary Subheading (90.00): These additional numbers indicate other medicaments of mixed or unmixed products, for retail sale that are not specified in the previous subheadings.

HSN Codes are essential in Luxembourg for customs clearance, determining tax rates such as VAT, and facilitating international trade by ensuring that all goods are classified uniformly.

Businesses leverage HSN Code-sorted trade data in Luxembourg to analyze market trends and competitive landscapes. This data is instrumental for informed decision-making and strategic planning.

Volza's platform provides a detailed list of HSN codes used in Luxembourg, along with export and import data, and VAT rates, offering businesses and traders valuable insights into Luxembourg's trade environment.