The HS Code, formally known as the Harmonized System (HS) Code or International Commodity Classification System, is a standardized numerical coding system developed and maintained by the World Customs Organization (WCO). It is used globally to classify and identify goods in international trade.
The primary purpose of the HS Code system is to provide a unified and internationally recognized classification standard, enabling customs authorities and trade organizations to efficiently manage tariffs, regulations, and trade statistics.
1. Structure of the HS Code
First 6 digits – International Standard
The first six digits of the HS Code are established by the WCO and are universally applied worldwide. All member countries must follow this structure to ensure consistency in global trade classification.
Digits 7–10 – National Subdivisions
Many countries extend the HS Code beyond six digits to provide more detailed classifications based on national tariff policies, trade controls, or statistical needs. These extensions vary by country.
Digits 11–12 – Extended National Codes (e.g. China)
In countries such as China, the HS Code may be expanded to 11 or 12 digits to allow for even more detailed product descriptions, regulatory control, and customs supervision.
2. Applications of HS Codes
Tariff Calculation
HS Codes directly determine applicable customs duties and tax rates, making accurate classification critical to cost control and compliance.
Trade Statistics
Governments rely on HS Codes to collect and analyze import and export data, which supports trade policy formulation and economic analysis.
Import & Export Licensing
Certain products require special permits or licenses. HS Codes help identify whether a product falls under controlled or restricted categories.
Customs Inspection & Regulatory Compliance
Customs authorities use HS Codes to determine inspection requirements, technical standards, and compliance obligations for specific goods.
3. Relationship with Other Classification Systems
SITC (Standard International Trade Classification)
SITC codes are commonly used for macro-level trade statistics and analysis. They are correlated with HS Codes to enable data comparison and economic research.
UNSPSC (United Nations Standard Products and Services Code)
UNSPSC is a broader classification system covering both products and services. It complements the HS system and is widely used in procurement and supply chain management.
4. How to Identify the Correct HS Code
Customs Websites and Databases
Most national customs authorities provide online HS Code search tools. By entering product names or descriptions, users can locate the appropriate classification.
Professional Consultation
For complex or ambiguous products, companies are strongly advised to consult experienced customs brokers or international trade consultants to ensure accurate HS classification and avoid compliance risks.
5. Updates to the HS Code System
The HS Code system is revised every few years to reflect technological advancements, new products, and changes in global trade patterns.
The latest revision, HS 2022, was officially released by the World Customs Organization and is currently in effect in many countries.
Conclusion
The HS Code system is not only a critical tool for customs authorities, but also an essential foundation for importers, exporters, freight forwarders, and global supply chain operators.
A solid understanding and correct application of HS Codes are key to smooth customs clearance, accurate duty calculation, and compliant international trade operations.
As a professional freight forwarding and logistics service provider, we support our clients with HS Code guidance, customs compliance, and end-to-end international shipping solutions, helping ensure efficiency, accuracy, and risk control across global trade flows.
