What Is NCM?

Are you curious to know what is NCM? You have come to the right place as I am going to tell you everything about NCM in a very simple explanation. Without further discussion let’s begin to know what is NCM?

In today’s globalized world, efficient and standardized systems for product classification and identification are crucial for international trade and regulatory compliance. One such system is the NCM, which stands for “Nomenclature Combinée,” or “Combined Nomenclature.” NCM is an integral part of international trade and customs procedures, and understanding its role is essential for businesses engaged in import and export activities. In this blog post, we’ll explore what NCM is, how it works, and its significance in international commerce.

What Is NCM?

NCM, or the Combined Nomenclature, is a systematic classification of goods used by customs authorities and traders worldwide to identify and categorize products for international trade. Developed and maintained by the World Customs Organization (WCO), the NCM assigns a unique code to each product or commodity, facilitating the smooth flow of goods across borders.

Key Components Of NCM:

  1. Numeric Codes: The NCM consists of a series of numeric codes, each representing a specific product category or group. These codes are hierarchical, with broader categories having fewer digits and more specific categories having more digits.
  2. Harmonized System: The NCM is based on the Harmonized Commodity Description and Coding System (HS), an international standard for classifying products. The first six digits of NCM codes correspond to HS codes, ensuring consistency in product classification globally.
  3. Additional Subdivisions: Beyond the HS codes, NCM codes may include additional subdivisions specific to the European Union (EU) for tariff and statistical purposes.

How NCM Works?

The NCM serves several essential functions in international trade:

  1. Customs Declaration: When businesses import or export goods, they must provide NCM codes on customs declarations. These codes accurately describe the products being shipped, enabling customs authorities to assess duties, taxes, and regulatory compliance.
  2. Duty Calculation: NCM codes determine the applicable import duties and taxes for each product category. Customs authorities use these codes to calculate the appropriate tariffs and fees.
  3. Trade Statistics: NCM facilitates the collection of trade statistics, enabling governments and international organizations to monitor trade flows, track economic trends, and assess the impact of trade policies.
  4. Regulatory Compliance: Regulatory agencies may use NCM codes to enforce product standards, safety regulations, and environmental requirements. Accurate classification is crucial to ensure compliance with applicable laws.
  5. Trade Negotiations: NCM codes play a role in international trade negotiations, as governments use them to negotiate trade agreements and establish tariff schedules.

Significance Of NCM In International Commerce

The significance of NCM in international commerce cannot be overstated:

  1. Standardization: NCM codes provide a standardized and universally accepted system for classifying products, reducing confusion and ensuring consistency in customs procedures worldwide.
  2. Efficiency: By streamlining the customs process, NCM facilitates the smooth movement of goods across borders, reducing delays and trade barriers.
  3. Transparency: NCM enhances transparency in international trade by providing a clear and structured framework for product classification, making it easier for businesses to understand and comply with customs regulations.
  4. Accurate Tariff Assessment: Businesses can accurately assess import duties and taxes based on NCM codes, helping them plan their finances and pricing strategies effectively.


The NCM, or Combined Nomenclature, is a fundamental tool for international trade, providing a standardized system for classifying products and facilitating customs procedures. Its role in customs declarations, duty calculation, and trade statistics collection is essential for businesses engaged in import and export activities. By understanding and correctly applying NCM codes, businesses can navigate the complexities of international commerce more efficiently and effectively.

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What Is The Meaning Of NCM Code?

NCM stands for “Nomenclatura Comum do Mercosul” (Mercosul Common Nomenclature). It is nothing more than a 8-digit code that defines any and all good that circulate in Mercosul countries. When importing, exporting, or even moving goods within the internal market, the NCM is an essential code to regulate operations.

Is NCM The Same As Hs Code?

NCM code full form is Nomenclatura Comum do Mercosul which is translated as Mercosul Common Nomenclature in the English language. Brazil customs use it for classifying the traded products in import export business. It is different from the HS code which has only six digits.

What Is A Hs Code For Customs?

An HS code (or HTS code) stands for Harmonized System code. Developed by the World Customs Organization (WCO), the codes are used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.

What Is The Mercosul Common Nomenclature?

The Mercosur Common Nomenclature (NCM) is a product classification system used by the countries that make up the Southern Common Market (Mercosur), which currently comprises Brazil, Argentina, Paraguay and Uruguay.

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