Poland uses the Harmonized System of Classification. Products are divided into three categories to determine which rate they receive: developing nations, WTO members, and countries with which Poland has a special trade relationship such as a bilateral preferential trade agreement. Under the terms of a 1992 agreement, Poland uses the EU Nomenclature System of Tariff classification and has granted duty-free status to over 1,000 line items from EU countries. Tariffs range from 0% to nearly 400%. In addition, all goods are subject to a 5% import tax, an excise tax on luxury items, and a value-added tax of 0%, 3%, 7%, or 22%, depending on the commodity. As a result of its efforts to join in the next round of EU expansion, Poland is bringing its trade regulations in line with EU standards.