Analogy Between HS Code and CN Code in Organic Food Classification: A Global Perspective

Standardized coding systems like the HS Code and CN Code is crucial for ensuring smooth international trade, certification, and compliance. These systems, while similar in some respects, serve different purposes based on the geographic and regulatory frameworks within which they operate. This article explores the analogy between the Harmonized System (HS) Code and the Combined Nomenclature (CN) Code, highlighting their applications in India's NPOP and the European Union's organic certification logistics systems—Tracenet and TRACES. We also discuss how these codes impact organic food certification, logistics, and trade across regions, particularly focusing on their roles in Transaction Certificates and Certificates of Inspection.

Understanding HS Code and Its Role in Organic Certification (NPOP, India)

The Harmonized System (HS) Code is an internationally standardized system developed by the World Customs Organization (WCO) to classify traded goods. With over 200 countries adopting this system, it enables the seamless identification of products and helps determine the duties, tariffs, and regulations applicable to each product.

In the context of organic food certification in India, the HS Code plays a pivotal role in the National Program for Organic Production (NPOP), administered by APEDA (Agricultural and Processed Food Products Export Development Authority). Organic products exported from India are classified under specific HS codes to ensure that they meet the required organic standards before export.

For instance, an organic mango from India may be classified under a particular HS Code that signifies it as both a mango and an organic product. This classification is crucial for customs clearance and determining whether the product qualifies for organic trade benefits, such as reduced tariffs or easier entry into foreign markets.

The logistics of this certification are managed via Tracenet, an online traceability system designed to ensure transparency and accountability in India's organic export supply chain. Transaction Certificates (TCs) issued through Tracenet include the HS Code for every organic product, confirming that the item being exported meets NPOP standards and the importing country's organic requirements.

For example, organic fruits and vegetables may fall under HS Code 0709, which includes fresh or chilled organic vegetables, while HS Code 1209 covers organic seeds used for cultivation. Similarly, HS Code 0902 is for organic tea, and HS Code 1001 represents organic wheat.

Understanding CN Code and Its Role in Organic Certification (European Union)

The Combined Nomenclature (CN) Code is an eight-digit coding system used in the European Union, developed to support the EU’s tariff and statistical requirements. The CN Code is a more detailed extension of the HS Code, tailored specifically for products entering or leaving the EU.

Within the European Union's organic certification framework, the CN Code is essential for facilitating trade, particularly for compliance with organic standards as per EU Regulation 848/2018. The European Commission’s TRACES system (Trade Control and Expert System) uses CN Codes in its Certificates of Inspection (COIs) to track organic products entering the EU, ensuring that they comply with the bloc's stringent organic standards.

For example, an organic tomato entering the EU from a third country must be categorized under its respective CN Code to verify its organic certification. The Certificate of Inspection, issued through TRACES, includes this CN Code, ensuring that the product adheres to the EU’s organic regulatory standards and can be sold as organic within the EU market.

Key Differences Between HS Code and CN Code

1. Geographic Scope and Application:

- HS Code: A globally standardized system used for general trade classification. It is used widely by countries like India through NPOP to ensure organic products meet international trade standards.

- CN Code: A system specific to the European Union, providing more granular detail than the HS Code. It is used to classify products entering or exiting the EU and is essential for managing trade under EU organic certification schemes.

2. Level of Detail:

- HS Code: Typically a six-digit code, offering a broad classification of products. For organic products, it identifies the product type but may not provide additional organic-specific information.

- CN Code: An eight-digit system offering more detailed product classification. In the context of organic products, the CN Code ensures that goods comply with the EU’s organic certification requirements and trade regulations.

3. Regulatory Use in Organic Certification:

- HS Code: Used in systems like Tracenet to facilitate the export of organic products from India and ensure compliance with international organic standards.

- CN Code: Integrated into TRACES for organic products entering the EU, providing a detailed framework to support compliance with EU organic regulations.

Practical Examples: Organic Certification and Logistic Systems

Let’s consider a few examples to understand how these coding systems are applied in practice:

- Organic Turmeric from India (HS Code): Turmeric is widely exported from India under organic certification. The HS Code for turmeric, combined with its organic certification in Tracenet, ensures that the product complies with both Indian and international organic standards. Once classified under the appropriate HS Code, the product’s export documentation is streamlined, making it easier for Indian exporters to access global markets.

- Organic Olive Oil entering the EU (CN Code): An organic olive oil from a third country, such as Tunisia, must be classified under its specific CN Code in TRACES to enter the European Union. The CN Code not only identifies the product but also ensures that it meets the EU's organic certification standards as per Regulation 848/2018. Without the correct CN Code, the product may face delays at customs or even be denied entry.

Why Understanding These Codes is Important for Organic Trade

For exporters and importers of organic food products, understanding the distinction between HS Code and CN Code is vital. The correct use of these codes ensures compliance with regional organic certification systems, facilitating smooth trade and reducing the risk of customs delays or rejections.

For example, failure to include the proper HS or CN Code on organic product documentation could lead to discrepancies in the Transaction Certificate (TC) issued by Tracenet or the Certificate of Inspection (COI) issued by TRACES, potentially jeopardizing the organic status of the product.

Additionally, organic food businesses that operate across multiple regions—such as those trading between India and the EU—must be especially diligent in applying both HS and CN Codes correctly in their logistics processes to ensure regulatory compliance and maintain organic certification integrity.

The HS Code and CN Code, while serving similar functions in the global classification of organic products, differ in their specificity and geographic scope. The HS Code is an internationally recognized system, widely used in countries like India for organic certification through systems like Tracenet, while the CN Code is specific to the EU and plays a vital role in TRACES for maintaining organic product integrity across the European Union.

Understanding these codes is critical for organic product exporters, importers, and certification bodies to ensure compliance, streamline logistics, and enhance transparency in the global organic food trade.

#OrganicCertification #HarmonizedSystem #HSCode #CombinedNomenclature #CNCode #NPOP #Tracenet #TRACES #OrganicFarming #Logistics #CertificateOfInspection #TransactionCertificate #GlobalTrade #FoodSafety #Sustainability #EUOrganicRegulation848/2018