What is the HS code?
If you want to import or export goods, each of your products will have an HS code. HS codes are crucial in international trade, as you must use them to declare your products at customs. However, in business practice, errors are frequently observed when declaring HS codes at customs, resulting in unnecessary costs and wasted time.
In the following article, I will give you a comprehensive understanding of HS codes, focusing on the following aspects:
What is the HS code?
The HS code stands for the International Convention on the Harmonized Commodity Description and Coding System (Harmonized System). It is also known as the tariff code. Customs in various countries use it as a standard for classifying internationally traded goods and managing tariffs. Currently, more than 200 countries recognize the HS code.
The HS code assigns a unified customs number to each product category. It is similar to an item identification number, for example:
- 640351 (footwear with leather sole and upper, covering the ankle)
- 640359 (footwear with a natural leather sole and upper, not covering the ankle).
HS code structure
More than 98% of internationally traded goods are classified under the Harmonized System. This system divides all internationally traded products into 22 categories:
Section of the HS Code | |
---|---|
1. Animals | 2. Vegetables |
3. Oils | 4. Food |
5. Mineral | 6. Chemistry |
7. Plastics | 8. Leather |
9. Wood | 10. Paper |
11. Textiles | 12. Footwear |
13. Stone | 14. Pearls |
15. Base metals | 16. Machinery |
17. Vehicles | 18. Instrument |
19. Weapons | 20. Various |
21. Art | 22. Special |
These 22 sections are further divided into 98 chapters. Sections and chapters typically describe general categories of products based on their raw materials, use, and performance. Chapters are further divided into headings and subheadings to describe products in more detail. You can consult this list of HS codes for more official information.
Thus, the HS code is a six-digit number that represents an article. The first two digits correspond to the chapter; the third and fourth to the heading; and the fifth and sixth to the subheading.
Let's take number 910111 as an example. It represents a hand-operated wristwatch, included in Chapter 91 (Watches and parts thereof), Heading 01 (Wristwatch) and Subheading 11 (Hand-operated wristwatch).
What are the HS codes for different countries?
The 6-digit HS code is international, but different countries can add 1 to 4 digits after the HS code to form their own tariff number to further classify products.
Therefore, according to the HS code, each country has its own classification standards for import and export products. Their tariff numbers have different names. For example, the HS code is called the HTS code in the US, the commodity code in the UK, the Taric code in the EU, and so on.
What is the HTS code in the United States?
The HTS (Harmonized Tariff Schedule) code is published by the U.S. International Trade Commission (ITC ). It is a U.S. classification system for imported products and determines tariffs on all goods imported into the U.S. from other countries.
HTS codes consist of 10 digits, the first six of which are identical to the HS code. For example, HS code 920110 corresponds to upright pianos. By adding four digits after 920110, the HTS code allows for additional classification of upright pianos:
- HTS code 9201100005: Used upright piano
- HTS code 9201100011: New upright piano containing a case with a height less than 111.76 cm.
- HTS Code 9201100021: New upright piano containing a case measuring 44 inches or more but less than 48 inches in height.
What is the Commodity Code in the UK?
The United Kingdom uses commodity codes to classify imported and exported items. These are published by HMRC. When importing into the UK, you must use the 10-digit commodity code. Like the HTS code, this one adds four digits after the HS code for better classification of goods.
As mentioned above, HS code 920110 corresponds to upright pianos. In the product code,
- 9201109000 means used upright piano
- 9201101000 means new upright piano
You see, the classification of upright pianos in the UK and the US is slightly different, but both countries expand their tariff codes according to the HS classification standard. Tariff codes for other countries are created similarly.
How to find the HS code?
Typically, you can ask your supplier or freight forwarder to search for the HS code for you. However, your supplier may only know the HS code for the products they sell. You can also search for it yourself through official HS code websites or other HS code search tools.
But before searching for the HS code, in addition to knowing the product name, it's best to know more about its material, composition, use, function, model, etc., as these can influence the result of the HS code search.
For example, there are two similar-looking textile products, both made of cotton and chemical fibers. Due to the different proportions of the materials, their HS codes are different. A small plastic stool used as a household item and fishing tackle may have different HS codes due to their different uses, even though they are the same product.
Therefore, you should select the HS code based on the product information. Only by knowing the product in more detail will you be able to select the HS code more accurately.
Search official websites
Customs in several countries have official websites for searching HS codes, which can show you the list of HS codes related to your products, such as:
USA: hts.usitc.gov
United Kingdom: trade-tariff.service.gov.uk
EU: ec.europa.eu
Canada: cbsa-asfc.gc.ca
Australia: ftaportal.dfat.gov.au
Japan: customs.go.jp
China: hsciq.com
Malaysia: https://ezhs.customs.gov.my
Hong Kong: censtatd.gov.hk/en/index_hs_code.html
Example of a US HS code search
If you are importing into the US , you need to find your HTS code by following these steps.
Step 1: Go to USITC .
Step 2: Enter the first six digits of "420221" in the search bar. You'll receive a list of related HS codes.
Step 3: Read the item description and choose the HTS code that best matches your product. In this case, it's "reptile skin." Therefore, the HTS code should be "4202213000."
Sometimes, you may not be able to obtain the HTS code from your supplier. In that case, you can search by product name. However, typing "bag" in the search bar will return many relevant results. Therefore, you should consider the first two digits, i.e., the HTS code chapter , to narrow your search.
-
Chapter 39 means plastics and articles thereof.
-
Chapter 42 means Leather goods; bags and similar containers.
-
Chapter 46 means Articles of straw, esparto grass or other plaiting materials.
-
Chapter 73 means Articles of iron or steel.
-
Chapter 74 means Copper and articles thereof.
Based on this classification, it's clear that leather handbags fall under Chapter 42, so you can look up the HS code for Chapter 42 directly. Then, read and select the most relevant product description and HS code.
Example of HS code search in the UK and EU
HS Code Lookup Tool
My suggestions
To find the correct HS code, you must familiarize yourself with the HS code classification standard. You also need a thorough understanding of your product so you can make the right decisions when reading the descriptions.
If your product's material or description is complex, we don't recommend declaring the HS code yourself. You can consult with your local customs office, a professional customs broker, or a freight forwarder.
What if the product name doesn't have the corresponding HS code?
According to the previous method, we basically used the product name to search. However, the HS code cannot cover all product names worldwide, and the same product is called differently in each country. Therefore, sometimes, you may not find the corresponding HS code by product name. In this case, products are usually classified according to their use, composition, or the "Other" category.
Let's take the steel clothesline as an example. Its HS code cannot be found through the name "clothesline" or its use.
So you can start with the materials. The iron clothesline is a steel product.
First, look up Chapter 73 (Articles of Iron or Steel).
First, look up Chapter 73 (Articles of Iron or Steel).
First, look up Chapter 73 (Articles of Iron or Steel).
Second, look for other iron or steel items (HS code 7326).
Third, select the HS code based on the product description. You'll find that both HS code 7326.20.00 (Other articles of iron or steel wire) and HS code 7326.90.86.88 (Other articles of iron or steel) apply to your product. You can choose either one, but we generally give preference to the latter.
Why is the HS code important?
You must use the HS code to declare your product at customs. The HS code is related to the product's tariff and declaration requirements. However, in import and export customs declarations, the classification of goods is complex. Due to different understandings of goods, companies and customs may divide the same goods into different categories and use the incorrect HS code to declare them. This can result in paying less or more taxes than required.
For example, a company declares imported thermal imaging cameras at customs. It uses HS code 90275000, with a 3% tariff and 17% VAT. However, customs in its region determines that the actual HS code should be 90318090 (6.8% tariff and 17% VAT). Therefore, the company makes errors in classifying and selecting the HS code for the declaration.
In practice, many companies face these situations. They receive customs sanctions and pay fines. This causes material damage and delays customs clearance.
Therefore, the HS code is essential for international trade. You must use the correct HS code. Never classify your goods randomly or blindly choose a tariff code with low tax rates. You must clear customs.
The end
We hope this article helps you better understand the HS code and provides you with practical search methods. If you have any questions, please leave a comment below.
Monthly Product Report: We collect the most popular items from over 1,000 customer orders to help you find your winning product.
Looking for more categories?
Most popular topics
View all-
Principales clasificaciones de las perlas
Revisar la clasificación de las perlas puede ayudarte a identificar su valor y calidad, incluso si no eres un experto en perlas. Sin embargo, no existe un sistema de clasificación...
Principales clasificaciones de las perlas
Revisar la clasificación de las perlas puede ayudarte a identificar su valor y calidad, incluso si no eres un experto en perlas. Sin embargo, no existe un sistema de clasificación...
-
What are the different types of handbags?
30 types of bags you should know Today I'll introduce you to 30 types of handbags based on their shape and function. I'll also show you several examples from popular...
What are the different types of handbags?
30 types of bags you should know Today I'll introduce you to 30 types of handbags based on their shape and function. I'll also show you several examples from popular...
-
What should you keep in mind when choosing pall...
What are pallets used for? A pallet is a flat platform used for stacking, storing, and transporting goods. It can be stored on racks or on transport vehicles. Typically, a...
What should you keep in mind when choosing pall...
What are pallets used for? A pallet is a flat platform used for stacking, storing, and transporting goods. It can be stored on racks or on transport vehicles. Typically, a...