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HS Codes

Learn the basics about Harmonized System (HS) codes.

Harmonized System(HS) codes are internationally recognized numerical representations of physical goods for international shipments. These codes are one of the most basic requirements for international shipments.

The HS nomenclature is multipurpose, has a simple hierarchical structure, and is published in both English and French by the World Customs Organization (WCO). It includes over 7,000 universal HS codes and is used by over 200 countries.

Keep reading to learn about HS codes, their history, and the difference between country-specific vs. universal codes.

HS Codes History

HS codes originated in 1988 when the WCO adopted a new tariff classification system called the Harmonized System (HS). According to the WCO, over 98% of the merchandise in international trade is classified using this HS code system in a collective effort to simplify international trade.

Every five years, the WCO releases an amended version of the Harmonized System to account for new innovations and technology.

Purpose of HS Codes

The primary use of HS codes is to determine import duties, collect international trade statistics, identify rules of origin and free-trade agreements, comply with customs requirements, collect government revenue, and monitor prohibited and restricted goods.

Universal (6-digit) codes

The universal WCO HS code system consists of 21 sections spanning 97 chapters. These codes represent three HS code hierarchies:

• two-digit codes (chapters)
• four-digit codes (headings)
• six-digit codes (subheadings)

These codes are supported by well-defined rules of interpretation in order to achieve uniform classification across the world.

Country-specific (8+ digit) codes

Country-specific codes can range from 8 to 14 alphanumeric characters, however in most cases are numerical only. Nearly every country utilizing the WCO’s Harmonized System has its own country-specific system as well. Countries extend the universal codes with their own codes, generally known as HTS codes. For example, in the U.S., the tariff system is known as the HTSUS.

To understand the way HTS codes vary depending on the country of importation, consider the following example of a basketball being imported into the U.S., Germany, and The Bahamas, based on their version of the HS system:

Country-specific HS Code examples

HS code compliance

Although the recipient is technically responsible for the correct HS code being applied to the goods in the shipment, it is best practice for you as the exporter to ensure the HS code accuracy. Otherwise, the consequences of an inaccurate HS code (rejected or held shipment, fines incurred, etc.) will cause a negative customer experience. Therefore, always assume the responsibility of accurately classifying your goods, and do everything you can to stay compliant.

HS code compliance tips

Review HS changes.
Identify which of your products are affected.
Map affected products to updated HS codes.
Identify when the countries that you ship to will update their HS codes.
Reclassify affected products with updated country-specific codes after each country that you ship to rolls out their changes.