HScodes

Harmonized System codes, commonly known as HS codes, are internationally standardized numerical classifications used to identify and categorize traded goods. They are maintained and updated by the World Customs Organization (WCO) and are the foundation for tariff schedules and trade statistics in most countries.

The HS is organized as a hierarchical structure. At its international core, products are assigned a six-digit code: the first two digits designate a chapter, the next two digits designate a heading within that chapter, and the final two digits designate a subheading. Many countries extend this system with additional digits (often to eight, ten, or more digits) to create more detailed tariff lines, statistical categories, and policy classifications relevant to national needs.

Usage and purpose: HS codes appear on customs declarations, commercial invoices, and other trade documents. They determine tariff rates, eligibility for duties and taxes, import controls, and permit requirements. They also support rules of origin determinations, trade negotiations, and the compilation of international trade statistics. By providing a common language for product classification, HS codes facilitate customs clearance, policy analysis, and cross-border commerce.

History and scope: The HS was developed by the WCO and serves as the global standard for classifying traded goods. It is periodically revised to reflect changes in technology and global trade, with updates typically implemented in new editions every few years. While the six-digit international framework remains constant, national authorities may adapt and extend codes to suit domestic regulatory and statistical needs, which can introduce variations in interpretation and classification in different jurisdictions.