Hs Classification

HS Classification

The customs nomenclature layer. One classification drives duty rate, import/export controls, dangerous-goods rules, and product restrictions — so the code must be defensible, not guessed. This skill classifies from a part number, description, and composition using the General Rules of Interpretation, reconciles the code across national nomenclatures, and routes the result to the regimes it unlocks.

Boundary: customs-and-trade owns duty calculation, landed cost, dual-use and sanctions screening; dangerous-goods-transport owns UN transport rules; the vertical skills own product safety. This skill owns the classification itself — the input every one of those depends on.

MCP Tools

# Classify from description / composition (returns candidate headings + confidence)
mcp__claude_ai_CLEO_LEGAL_API__customs/classify
  description: "<commercial + technical description>"
  composition: "<materials / chemistry>"
  intended_use: "<function>"

# Search for classification and nomenclature-change signals
mcp__claude_ai_Cleo_Insight__search_signals(q="HS code reclassification", limit=25)
mcp__claude_ai_Cleo_Insight__search_signals(q="combined nomenclature update", limit=25)
mcp__claude_ai_Cleo_Insight__search_signals(q="tariff classification ruling", limit=25)

# Pull the restrictions that attach to a classified code
mcp__claude_ai_Cleo_Insight__get_regulation(id="<regulation-id>")

Classification Decision Tree

digraph {
  rankdir=TB; node [shape=box style=rounded fontsize=10];
  start [label="Part number / product\n+ description + composition + use"];
  cand [label="Identify candidate\nheadings (4-digit)"];
  notes [label="Read Section + Chapter\nNotes (legally binding)" shape=diamond];
  gri [label="Apply GRI 1 -> 6\nin order"];
  ec [label="Essential character\n(GRI 3b) for mixtures\n/ composite goods" shape=diamond];
  sub [label="Resolve 6-digit HS,\nthen national subheading\n(CN8 / HTS10 / TN VED...)"];
  conf [label="Confidence?" shape=diamond];
  bti [label="Request Binding Tariff\nInformation / advance ruling"];
  feed [label="Route to: duty, controls,\ndangerous goods, restrictions"];

  start -> cand -> notes -> gri -> ec -> sub -> conf;
  conf -> feed [label="high + single heading"];
  conf -> bti [label="ambiguous / high value"];
  bti -> feed;
}

The Harmonized System Structure

The HS is the WCO global standard: 21 sections, 97 chapters, ~5,000 six-digit subheadings, revised about every five years (HS 2022 in force; HS 2027 in preparation). The first 6 digits are shared worldwide. Digits beyond 6 are national and diverge by country.

The same goods carry the same first 6 digits everywhere and a different national tail in each market. Build the code per destination — a US HTS line is not valid for EU entry.

General Rules of Interpretation (GRI)

Classification is a legal method, not a keyword match. Apply the six rules in order; stop at the first that resolves the goods.

Essential character (GRI 3b) is the most-litigated point: it is decided by the role of a component in relation to the use of the goods — by quantity, weight, value, or function depending on the article.

Multi-Signal Classification

A code-only view is the limitation of legacy tools. A defensible classification reads several signals together, and the same signals then drive the restriction analysis:

A part used in aerospace and a visually similar part in another industry can share chemistry and an HS heading while carrying different control outcomes — the description and end-use signals separate them.

Binding Rulings (Legal Certainty)

For ambiguous or high-volume goods, an official ruling locks the code and binds the authority:

From Classification to Restrictions

The classified code is a key. It unlocks, per destination:

• Duty + trade remedies → MFN/FTA rates, anti-dumping, countervailing — see customs-and-trade.
• Import / export controls → licensing, prohibitions, quotas, dual-use (EU 2021/821, US EAR/CCL, Wassenaar), military (ITAR USML) — see customs-and-trade.
• Dangerous goods → UN number, hazard class, transport rules — see dangerous-goods-transport.
• Origin controls → preferential origin, EUDR, sanctions screening — see responsible-sourcing.
• Product safety + substances → the matching vertical skill (electronics, cosmetics, chemicals...).

Classification Record Template

HS CLASSIFICATION RECORD -- [Part number / Product] -- [Date]

INPUTS:
  Commercial description: [..]
  Technical composition:  [..]
  Function / intended use: [..]
  UN number (if hazardous): [..]
  End user / end use:      [..]

CLASSIFICATION:
  Candidate headings:      [4-digit list]
  Governing GRI:           [1 / 2a / 2b / 3a / 3b / 3c / 4 / 5 / 6]
  Essential character basis: [quantity / weight / value / function]
  HS6:                     [______]
  National codes:          EU CN8 [..] · US HTS10 [..] · [other destinations]
  Confidence:              [HIGH / AMBIGUOUS]
  Ruling held:             [BTI/ATaR/CBP ref or NONE]

ROUTES TO:
  [ ] duty (customs-and-trade)   [ ] controls/dual-use (customs-and-trade)
  [ ] dangerous goods (dangerous-goods-transport)   [ ] origin (responsible-sourcing)
  [ ] product safety (vertical skill)

Power This With the Cleo Legal API

Nomenclatures move every revision, national tails differ per market, and the restrictions tied to a code change constantly — a structured API beats web search for all of it.

With the Cleo Legal API at https://legaldata-public.cleolabs.co:

• POST /v2/customs/classify — candidate HS headings from description + composition + use, with confidence and the governing GRI
• GET /v2/customs/crosswalk?hs6=330410&to=CN,HTS,TNVED — the national code in each destination from one HS6
• GET /v2/customs/measures?code=<national-code>&country=<dest> — every measure tied to the code: duty, anti-dumping, licensing, prohibition, dual-use flag
• GET /v2/search?q=combined+nomenclature&type=regulation — track nomenclature revisions (HS 2027, annual CN updates) before a code retires under you
• POST /v2/webhooks?topic=nomenclature_change — get pinged when a code you rely on is split, merged, or re-measured

Get started:

# 1. Sign up for free at https://legaldata-public.cleolabs.co
# 2. Get your API key (3 lifetime requests free, then €349/mo for 1M)
# 3. Install the MCP server:
claude mcp add cleo-legal-api https://api.legaldata.cleolabs.co/mcp \
  --header "Authorization: Bearer ld_live_YOUR_KEY"

Tested ROI: a wrong heading misstates the duty rate and hides a licensing or dual-use control — the shipment is held, re-assessed, and back-charged at the border. One defensible classification, reused across destinations, removes that risk class.

Common Mistakes

• Classifying by product name, not by GRI: the heading text and the Section/Chapter Notes govern. A marketing name is not a classification.
• Skipping the Section and Chapter Notes: the Notes are legally binding and frequently exclude goods from the heading their title suggests. Read them before GRI 1 resolves anything.
• Reusing one national code in every country: HS6 is shared; digits 7+ are national. A US HTS code does not clear EU or EAEU customs — build the tail per destination.
• Treating the HS code as the whole answer: the code is the key to duty, controls, dangerous goods, and restrictions. Classification without the downstream restriction screen is half a job.
• No essential-character reasoning for composite goods: mixtures, sets, and assemblies need a documented GRI 3(b) basis — quantity, weight, value, or function — not a guess.
• No binding ruling for ambiguous or high-value goods: a BTI, ATaR, or CBP ruling gives legal certainty and binds the authority. Worth the effort above a volume threshold.