Definition
An HS code is a standardized number from the Harmonized System, maintained by the World Customs Organization, that classifies a traded product for customs. The first six digits are shared internationally, and countries add more digits for their own tariffs. Customs use the HS code to set duty rates, apply trade rules, and collect statistics.
Also called: Harmonized System code, Tariff code, Commodity code, HTS code
HS code in practice
HS codes are organized into chapters, headings, and subheadings. For example, chapter 61 covers knitted clothing, and further digits narrow it down by garment type and material. National extensions include the 10-digit HTS code in the US and the commodity codes used in the UK and EU.
Include the HS code for each product on commercial invoices and customs declarations. A wrong code can mean paying the wrong duty, delays at the border, or penalties.
The Harmonized System is revised roughly every five years, so check codes against the current national tariff, especially for new or changed products.
Example
An exporter of cotton T-shirts lists HS code 6109.10 on its commercial invoice. The US importer then uses the full 10-digit HTS code under that subheading to declare the goods.
Frequently Asked Questions
How do I find the HS code for my product?
Search your country's official tariff database by product description, or ask a customs broker. Many customs authorities also issue binding rulings on request.
Do I need HS codes on a commercial invoice?
They are required or strongly expected by most customs authorities and carriers. Including them speeds clearance and reduces queries.
Related terms
- Customs duty Customs duty is a tax charged by a country on goods imported into it, usually calculated as a percentage of the goods' customs value according to their HS code and country of origin.
- Commercial invoice A commercial invoice is the official invoice used for international shipments that customs authorities rely on to assess duties and taxes.
- Incoterms Incoterms are standard three-letter trade terms published by the International Chamber of Commerce that define who pays for shipping, insurance, and customs, and where risk passes from seller to buyer in an international sale.
- EORI number An EORI number is an identifier that businesses need to import or export goods into or out of the European Union or the United Kingdom.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.