Harmonized Code (HS Code)

Also known as: HS Code, HTS Code, Tariff Code, Commodity Code

Definition

The Harmonized System (HS) is a standardized numerical method of classifying traded products. Used by customs authorities worldwide, HS codes determine duty rates, import restrictions, and statistical tracking. Getting your HS code right is essential for smooth international shipping.

How HS Codes Work

HS codes start at 6 digits (international standard) and expand to 8-10 digits for country-specific detail:

Example: Cotton T-shirt

  • 61 - Articles of apparel, knitted
  • 6109 - T-shirts, singlets, tank tops
  • 6109.10 - Of cotton
  • 6109.10.00.12 (US full code) - Men’s cotton T-shirts

The more digits, the more specific the classification.

HS Code Structure

Digits Level Example
2 Chapter 61 - Knitted apparel
4 Heading 6109 - T-shirts
6 Subheading 6109.10 - Cotton T-shirts
8-10 National detail Country-specific

The first 6 digits are standardized globally. Additional digits vary by country.

Why HS Codes Matter

  1. Duty rates - Different codes = different duty percentages
  2. Import restrictions - Some codes require permits or are prohibited
  3. Trade agreements - Preferential rates only apply to correct codes
  4. Compliance - Wrong codes can trigger penalties and delays
  5. Statistics - Governments track trade flows by code

Finding Your HS Code

Methods:

  1. Use the HTS database - hts.usitc.gov (US) or similar for other countries
  2. Ask your customs broker - They classify products professionally
  3. Check previous shipments - If you’ve imported before
  4. Carrier tools - FedEx, UPS, DHL have classification helpers
  5. Binding ruling - Request official classification from customs

Be careful with:

  • Similar-sounding categories (cosmetics vs. toiletries)
  • Material composition (cotton vs. synthetic blends)
  • Intended use (sport vs. fashion)

Common HS Code Mistakes

  1. Guessing - Always research; incorrect codes cause problems
  2. Using outdated codes - HS codes update periodically
  3. Assuming similarity - Related products can have very different codes
  4. Ignoring material - Cotton shirts vs. polyester shirts = different codes
  5. Forgetting components - Electronics with different components may need separate codes

HS Codes on Commercial Invoices

Always include HS codes on international shipping documents:

  • Speeds customs processing
  • Reduces classification disputes
  • Helps calculate duties accurately
  • Required for many countries
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