Tax Classification

What is tax classification?

Each type of goods is taxed differently, according to its classification. However, what is the tax classification?

The tax classification of goods is made by the MCN (Mercosur Common Nomenclature) adopted from 1995 in the countries that integrate Mercosur. It uses the Harmonized System (HS) as a base, which was created by the WTO (World Trade Organization). The MCN aims to identify the nature of the goods traded between the countries that are part of the economic bloc through a code. For each type of products, there is a corresponding code, consisting of an eight-digit sequence.

The SH is an internationally adopted system for the identification of products in transit between countries. The first six digits that form the MCN number are part of the HS, and the last two refer to the specifications agreed between the MERCOSUR countries. The MCN numbering appears documents related to the transaction, such as the Import Declaration (Dl) and the commercial invoice.

What is the MCN for?

• Standardization of the goods regarding their manufacture and/or destination of use;
• To determine the import tax rates;
• For statistical calculations on foreign trade;
• To check the regulatory bodies of each product.

How can Hanz help you?

Hanz performs a feasibility study to verify if the goods to be imported or exported have any benefit or restriction with the foreign trade consent bodies. This provides more security for your company and can represent advantages with certain goods and prevent blockages or fines as a result of the trade of restricted goods.

With the help of Hanz, you will be sure that the import or export process will be done under the legal procedures. We rely on the collaboration of competent and experienced professionals in the area of foreign trade. So please contact us! Together, we will make your company more competitive and prepared to explore new markets.