When you import or export goods, you will quickly come across the term HS code. But what exactly is an HS code? An HS code (Harmonised System code) is an internationally standardised commodity code used to classify products worldwide for customs purposes.
This code forms the basis for import duties, VAT, and customs controls. Without the correct HS code, a shipment may be delayed or even rejected.
How does an HS code work?
An HS code consists of 6 digits and is used worldwide. These first six digits are the same in every country. Many countries add extra digits for further specification.
The structure is as follows:
- First 2 digits: product category
- Next 2 digits: subcategory
- Last 2 digits: specific product group
Example: An HS code for shoes may start with 6403, which refers to leather footwear.
What is an HS code used for?
HS codes play a crucial role in international trade. They are used for:
- Determining import duties and taxes
- Performing customs checks
- Collecting trade statistics
- Verifying import and export regulations
The HS code is used on commercial invoices and customs documents for international shipments.
Why is the correct HS code important?
A mistake in the HS code may seem small, but often has direct consequences:
- Incorrect import duties, leading to overpayment or additional charges
- Delays at customs are impacting delivery times
- Risk of fines due to incorrect declarations
That is why it is important to ensure the correct classification. In practice, this is often more complex than it seems, especially for combined or technical products. An HS code can be found via customs databases or verified by a logistics specialist.
More certainty in international shipments
Do you regularly deal with import or export? Then, having the correct HS code is essential for a smooth process. At the same time, you don’t have to figure this out on your own.
Want more control over your international logistics and customs processes? Read more about international transport and discover how to avoid risks and delays.
