HS Code
An HS code is the international classification number for a product, and it is what determines the duty rate your shipment attracts.
Definition
The Harmonized System is a standardised numerical classification of traded products maintained by the World Customs Organization. The first six digits are common worldwide; individual countries add further digits for national tariff detail.
The code drives the duty rate, and often determines whether a licence, quota or additional duty such as anti-dumping applies. Classification is a legal declaration, not a formality.
Example
Two similar products can sit under different codes with duty rates several percentage points apart. A wrong code is the single most common cause of customs penalties.
When you will come across it
- Preparing a commercial invoice and customs entry
- Estimating duty before committing to a purchase order
- Checking whether a preferential origin agreement removes duty on your product
Frequently asked questions
How do I find the right HS code for my product?
Look it up in the destination country's tariff schedule, or ask your customs broker to confirm the classification. Guessing is the most expensive way to do it.
Are HS codes the same in every country?
The first six digits are harmonised worldwide. Countries add further digits for national tariff detail, so the rate and the full code can differ by destination.
What happens if I declare the wrong code?
Customs can reassess, charge the duty difference, and impose penalties. Repeated errors increase the likelihood of physical inspection on future shipments.