The Harmonized System (HS) is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics. The HS is administered by the World Customs Organization (WCO) and is updated every five years.
What is an HS Code?
An HS code is a six-digit number that classifies a product. The first two digits identify the chapter the goods are classified in, the next two digits identify the heading within that chapter, and the final two digits identify the sub-heading. Many countries add additional digits to the HS code to further sub-classify products for their own statistical and tariff purposes.
"The HS code is the universal language of customs."
Why are HS Codes Important?
HS codes are a critical component of international trade. They are used to:
- Determine customs duties and taxes.
- Identify goods that are subject to import restrictions or require special licenses.
- Gather trade statistics.
- Facilitate customs clearance.
How to Find the Correct HS Code
Finding the correct HS code for your product can be challenging. The WCO provides a tool on its website to help you find the correct code, but it can be complex to use. Many national customs authorities also provide their own tools. The best way to ensure you are using the correct HS code is to work with a customs broker or trade facilitator like Dunrite Global Enterprises. We have the expertise to correctly classify your products and ensure a smooth customs clearance process.