Harmonized System Code | HS Code

The Harmonized System (HS) code is an internationally standardized system of names and numbers used to classify traded products. The HS code is used by exporters, importers and customs officials around the world to determine the appropriate customs duties, taxes, and regulations for specific products being imported or exported.
 
The HS code is a six-digit code, with additional digits used to provide more specific information about the product being traded.

 

Nomenclature:
 
First two digits - First two digits of the HS code indicate the chapter, which refers to the broad category of the product.

The next two digits - Next two digits indicate the heading, which refers to the subcategory of the product.

Last two digits - Last two digits indicate the subheading, which provides more detailed information about the product.
 
The Harmonized System (HS) code is governed by the World Customs Organization (WCO), which is a global intergovernmental organization that develops and maintains the HS code. The WCO is headquartered in Brussels, Belgium, and has over 180 member countries.
 
The WCO is responsible for updating and maintaining the HS code, which is used by customs officials around the world to classify traded goods. The HS code is periodically revised to reflect changes in international trade and to ensure that it remains up-to-date with evolving technology and new products.
 
In addition to the HS code, the WCO also develops and maintains other international standards related to customs and trade, including the WCO Data Model, the Customs Valuation Code, and the Kyoto Convention. The WCO also provides technical assistance and training to customs officials in developing countries to help them implement and comply with international customs and trade standards.
 
Overall, the WCO plays a critical role in promoting international trade and ensuring that customs procedures are standardized and harmonized across countries. By developing and maintaining the HS code and other customs and trade standards, the WCO helps to reduce trade barriers and promote economic growth and development.
 
Use of HS Code:
 
The Harmonized System (HS) code is used to classify traded goods in international trade. Here are some of the main uses of the HS code:
 
Customs and Tariffs: The HS code is used by customs officials to determine the appropriate customs duties and taxes that must be paid when goods are imported or exported. Customs duties and taxes vary depending on the type of product being traded and the country in which it is being imported or exported.
 
Trade Statistics: The HS code is used to collect trade statistics, which provide information on the volume, value, and direction of trade between countries. Trade statistics are used by governments and businesses to analyze trade patterns and identify emerging trends.
 
Regulatory Compliance: The HS code is used to enforce regulatory compliance and to ensure that products meet the standards and regulations of the importing country. For example, certain products may be subject to health, safety, or environmental regulations that must be met in order to be imported.
 
Market Access: The HS code can be used by businesses to identify market opportunities and to determine which countries have the greatest demand for their products. The HS code can also be used to identify potential barriers to trade, such as tariffs, quotas, or licensing requirements.
 
Overall, the HS code is an important tool for facilitating international trade, ensuring regulatory compliance, and collecting trade statistics. It helps to standardize the classification of traded goods, making it easier for businesses to identify market opportunities and comply with import and export regulations.