The Harmonized System (HS) Code, officially implemented on January 1, 1988, is an internationally standardized system for classifying traded products, developed and maintained by the World Customs Organization (WCO). It has become an essential foundation of global trade.
The HS Code generally consists of 6 to 10 digits.
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The first six digits are standardized internationally by the WCO and are used worldwide.
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The additional digits are defined by individual countries according to their own regulatory and statistical needs. (China, for example, adopts a 10-digit HS code system.)
Each HS code uniquely identifies a specific product, providing a unified language for customs declaration, tariff application, trade statistics, and international commercial communication.
Key Functions of the HS Code
1. Promoting Orderly International Trade
The HS Code serves as a common classification system for global trade, eliminating discrepancies in product descriptions among different countries. It enables traders, customs authorities, and logistics providers to communicate efficiently and accurately.
2. Enhancing Customs Supervision and Efficiency
Customs authorities rely on HS codes to quickly identify and classify imported and exported goods. This improves customs clearance efficiency while strengthening control measures to prevent illegal or non-compliant trade activities.
3. Supporting International Trade Statistics and Analysis
HS codes provide a standardized basis for collecting and analyzing trade data worldwide. Governments and institutions use this data to assess trade trends, formulate economic policies, and evaluate market performance.
4. Determining Tariff Rates and Tax Policies
HS codes are also commonly referred to as “tariff codes.” They determine the applicable customs duties and taxes for imported and exported goods, forming the foundation for tariff collection and trade policy implementation.
Important Notes for Importers and Exporters
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Proper understanding and correct use of HS codes help ensure smooth customs clearance, reduce compliance risks, and improve overall trade efficiency.
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HS codes are periodically updated. Companies should always verify that they are using the latest version applicable to their products.
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HS codes can be checked through official customs authorities, government websites, or professional trade service platforms.
