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Grey Exim

Grey Exim
Jun 13, 20232 min read

HS Code: What is it?

Harmonized Commodity Description and Coding System


The Harmonized Commodity Description and Coding System (HS) is an international goods classification system developed by the Customs Co-operation Council (now the World Customs Organization) and used globally to classify imported and exported goods.



The image shows the logo of Grey Exim in the top left corner in white. Below the logo, the title of the blog, "HS Code: What is it?" is written. On the right side of the image, there is a vector image of the HS code.


Do You Know What Harmonized System (HS) Shipping Codes Are?


The HS code is a worldwide terminology for the classification of items. Worldwide it is a six-digit code framework for grouping and categories of different merchandise and goods being exported. It helps customs in various countries ensure that they are talking about the same product, and the HS code of a product also determines the import duties. Some countries even specify further with an eight-digit code.


If you are an exporter of products and know your HS codes, you can quickly get more insights on growing your international sales. For example, by looking at import volume trends and country price levels.



How many Harmonized System (HS) codes are there?


There are approximately in circulation 5,300 HS codes that identify export goods broken down into headings and subheadings. They are also arranged into 99 different chapters and grouped into 21 sections. The shipping code is split into the following three separate parts:


  1. The first two digits give a rough indication of the product and refer to the various chapters of the list (HS-2).

  2. The following two digits within the code help to further identify the product category (HS-4).

  3. The final two digits within the code are particular to the goods exported (HS-6).


Only a few countries do not follow the current version of the 3 for the HS-6 level. They apply the old version of Harmonized System rather than the new updated version.

The HS Code provides information on any product's import and export regulations. A 6-digit number is displayed in the image. The numbers 09, 03, and 98 indicate the chapter, heading, and subheading, respectively, in the HS Code system.










Harmonized System and Harmonized Tariff Schedule


The Harmonized Systems (HS) is linked with the Harmonized Tariff Schedule (HTS) of the countries you want to export. Depending on the HS code you assign your goods, you will have to pay import duties. If you do not apply these codes correctly, your interests may be seized, or you may face penalties. Especially where two or more HS codes may be used, you may want to check first with customs in the target country.


Picking the correct HS code is one thing, but you also need to check local regulations for your product and the best way to get traction in a market because there may be more opportunities than the one importer that wants to buy from you.


What's the first step you're going to take? Share this post with your friends and family, and leave a comment.

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