HS codes

What are HS codes?

The Harmonized Commodity Description and Coding System, commonly known as the Harmonized System (HS), is an internationally standardised system of names and numbers to classify traded products. Developed and maintained by the World Customs Organization (WCO), the system is used by more than 200 countries for levying customs duties and taxes, monitoring controlled goods, and collecting international trade statistics.

HS codes consist of a sequence of six digits, broken down into three pairs. Each pair provides increasing detail about the item it represents:

1. The first two digits denote the HS Chapter. This indicates the general category of goods.
2. The next two digits define the HS Heading. These provide a more specific sub-category within the general category.
3. The final two digits specify the HS Subheading. This offers a very detailed description of the product, sometimes even indicating its material composition or its specific use.

Countries that adhere to the HS can add additional digits to the HS code to further distinguish goods for domestic purposes. For instance, the U.S. uses a 10-digit system known as the Harmonized Tariff Schedule (HTS) for goods imported into the country. Looking for HTS code meaning? Click here

Ultimately, the Harmonized System facilitates trade by providing a universally accepted classification structure, reducing ambiguity, and ensuring that products are correctly classified for customs and statistical purposes.