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HS Code: What is it?

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Harmonized Commodity Description and Coding System


The Harmonized Commodity Description and Coding System (HS) is an international goods classification system developed by the World Customs Organization (WCO) and used globally to classify imported and exported goods.



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Do You Know What Harmonized System (HS) Shipping Codes Are?


The HS code is a worldwide terminology for the classification of items. It is a six-digit code framework for grouping and categorizing different merchandise and goods being exported. It helps customs in various countries ensure that they are talking about the same product, and the HS code of a product also determines the import duties. Some countries even specify further with an eight-digit code.


If you are an exporter of products and know your HS codes, you can quickly gain more insights on growing your international sales. For example, by looking at import volume trends and country price levels.



How many Harmonized System (HS) codes are there?


There are approximately 5,300 HS codes in circulation that identify export goods, broken down into headings and subheadings. They are arranged into 99 different chapters and grouped into 21 sections. The shipping code is split into the following three separate parts:


  • The first two digits give a rough indication of the product and refer to the various chapters of the list (HS-2).

  • The following two digits within the code help to further identify the product category (HS-4).

  • The final two digits within the code are particular to the goods exported (HS-6).


Note that only a few countries do not follow the current version for the HS-6 level, opting instead for an older version of the Harmonized System.

The HS Code provides information on any product's import and export regulations. A 6-digit number is displayed in the image. The numbers 09, 03, and 98 indicate the chapter, heading, and subheading, respectively, in the HS Code system.











Harmonized System and Harmonized Tariff Schedule


The Harmonized Systems (HS) is linked with the Harmonized Tariff Schedule (HTS) of the countries you wish to export to. Depending on the HS code you assign to your goods, you will have to pay import duties. If you do not apply these codes correctly, your shipments may be seized, or you may face penalties. Especially where two or more HS codes may apply, it's wise to check first with customs in the target country.


Picking the correct HS code is crucial, but you also need to check local regulations for your product and explore the best strategies for gaining traction in a market because there might be more opportunities than just selling to one importer.


What's the first step you're going to take? Share this post with the right person, and leave a comment.

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