HSN Codes ( EUDR )

Understanding how HSN (Harmonized System of Nomenclature) codes align with the EU Deforestation Regulation (EUDR) is critical for compliance. These codes determine whether your product falls under the regulation and whether due diligence obligations apply. 

Let’s break it down. 

What are HSN codes and why do they matter for EUDR? 

HSN codes are internationally standardized classification codes used to identify traded goods. Under EUDR, Annex I lists specific commodities and products using HS/HSN codes. 

Why this matters: 

• Determines if your product is in scope of EUDR 

• Defines whether due diligence is required 

• Impacts customs declarations and DDS submission 

If your product’s HSN code matches Annex I, EUDR compliance is mandatory. 

Which commodities are covered under EUDR HSN codes? 

EUDR covers seven key commodities and their derived products: 

• Cattle 

• Cocoa 

• Coffee 

• Palm oil 

• Rubber 

• Soy 

• Wood 

Each of these is linked to specific HS codes. For example: 

• Rubber → HS 4001, 4002, 4011 (includes tires, gloves) 

• Soy → HS 1201, 1208 

• Wood → HS 4401–4421 

Derived products (like furniture, chocolate, gloves) may also be included depending on their classification. 

How do you check if your product falls under EUDR? 

Start with these steps: 

1. Identify your product’s HSN/HS code 

2. Match it with Annex I of EUDR 

3. Check if it is: 

• A raw commodity 

• A derived product 

If listed: 

• You are subject to due diligence obligations 

If not listed: 

• EUDR does not apply (even if the product is derived from a covered commodity) 

Do all products made from regulated commodities fall under EUDR? 

No. This is a common misconception. 

EUDR is: 

• Product-specific (based on HS codes) 

• Not material-based alone 

Example: 

• Soybeans → Covered 

• Soy oil → Covered 

• Processed food using soy → Often not covered 

Always rely on HS classification not assumptions. 

What happens if you use the wrong HSN code? 

Incorrect classification can lead to serious consequences: 

• Incorrect DDS submission 

• Customs clearance delays 

• Shipment rejection 

• Financial penalties 

• Regulatory audits 

In some cases: 
Misclassification may be treated as non-compliance 

How do HSN codes link to Due Diligence Statements (DDS)? 

When submitting a DDS: 

• You must declare the relevant product and HS code 

• This links your product to: 

• Geolocation data 

• Risk assessment 

• Supplier traceability 

Customs authorities use HS codes to: 

• Validate declarations 

• Cross-check compliance 

HSN codes act as the bridge between trade and compliance data 

How should companies manage HSN codes for EUDR compliance? 

Best practices include: 

• Maintain a centralized product classification system 

• Map all SKUs to HS codes 

• Validate classifications with trade experts 

• Align ERP systems with compliance workflows 

• Integrate HS codes into DDS processes 

This ensures consistency across procurement, compliance, and logistics. 

People Also Ask

1. Are HSN codes mandatory for EUDR compliance? 

Yes. HSN/HS codes are essential for identifying whether a product falls under EUDR and must be included in DDS submissions and customs declarations. 

2. Do HS codes differ across countries for EUDR? 

The first 6 digits (HS code) are globally standardized. Additional digits may vary by country, but EUDR relies on the standardized classification. 

3. Are all rubber products covered under EUDR? 

No. Only specific HS codes listed in Annex I are covered. Some rubber-derived products fall under EUDR, while others do not. 

4. Can a product fall out of scope even if it contains a regulated commodity? 

Yes. If the product’s HS code is not listed in Annex I, EUDR does not apply even if it contains a regulated raw material. 

5. How often should companies review HSN classifications? 

Regularly. Especially when: 

• Launching new products 

• Changing suppliers 

• Entering new markets 

• Facing regulatory updates 

Final Takeaway 

HSN codes are not just a trade requirement they are the starting point of EUDR compliance. 

They determine: 

• Whether your product is regulated 

• What data you must collect 

• Whether you can legally place goods on the EU market 

In the EUDR framework: 

If your HSN code is in scope, compliance is not optional 
If your classification is wrong, everything downstream is at risk