A Complete Guide to HS Codes

When managing cross-border logistics in Brazil, a single classification mistake can halt your operations, trigger heavy tax fines, or lead to the seizure of your cargo.

What is an HS code?

Harmonized System (HS) codes are a unique identifier to classify the exact type of goods you are shipping. They serve as the foundational language for global trade, determining exactly how much duty your business will pay and which administrative rules apply to your inventory.

HS codes were created by the World Customs Organization, and are internationally recognized in almost every country. As customs and government bodies now have a common point of reference to instill regulations based on HS classes, they are able to create a standard to approach each HS category the same way.

This in turn creates a more organized importing/exporting structure and a good guideline for countries wanting to implement new regulations.

How to find the HS code for cross-border logistics in Brazil?

To find the correct HS code for your product, you must use official government classification platforms or advanced digital routing tools provided by your international carrier. Shippers can execute a search via the Siscomex platform (the integrated foreign trade system managed by the Brazilian government) or utilize DHL Express' dedicated Interactive Classifier tool.

The responsibility of providing the HS code always falls on the shipper, meaning your business must execute a reliable harmonized code lookup before generating any international waybill.

Understanding the 6-Digit Code Structure

The international Harmonized System uses a standardized six-digit numerical structure to classify commodities:

1. The first two digits identify the primary chapter under which the product falls. Globally, there are 21 overarching sections divided into 99 chapters that generalize broad product sectors.

2. The next four digits break down the item further into its specific heading and sub-heading within that designated chapter.

[ 0 9 ] -> Chapter (e.g., Coffee, Tea, and Spices)

[ 0 1 ] -> Heading (e.g., Coffee, whether or not roasted)

[ 1 1 ] -> Subheading (e.g., Not decaffeinated, unroasted)

The Regional Variation: HS Codes vs. NCM in Brazil

While global trade relies on the foundational six-digit HS structure, regional trade agreements frequently append extra digits for local tax and regulatory purposes. Just as ASEAN nations use an eight-digit classification called the ASEAN Harmonized Tariff Nomenclature (AHTN), Brazil and its fellow Mercosul members utilize the NCM (Nomenclatura Comum do Mercosul).

The NCM is an eight-digit system where the first six digits mirror the international HS code perfectly, while the final two digits define regional sub-classifications unique to Mercosul trade.

When exporting from or importing to Brazil, you must track both systems: the six-digit HS code is universally accepted globally, but the eight-digit NCM code is mandatory for domestic fiscal documents (like the Nota Fiscal Eletrônica or NF-e) and customs declarations.

ASEAN countries follow the ASEAN Harmonized Tariff Nomenclature (AHTN) – where the first six digits still take reference from the international HS codes – but there are an additional two digits at the end that further break down the sub-headings. Commodities shipped within ASEAN normally use the eight digit AHTN classification, but the six digit HS codes are also considered valid.

How to use the HS code in your business workflow?

Businesses are encouraged to indicate the HS code in their shipping documents to ensure a uniform mode of clearance every time.

There are thousands of different HS codes, and each commodity is further dissected into highly specific technical descriptions to leave zero room for customs misinterpretation.

For example, when looking up a standard apparel item like a men's shirt, you will discover that the system splits into roughly 10 distinct codes depending on material composition. There are separate, specific categories for:

• Men’s shirts made out of pure cotton

• Men’s shirts constructed from synthetic fibers

• Men’s shirts assembled from other alternative textiles

In some instances, certain technical commodities may contain overlapping definitions where two or more codes initially seem to apply. In such cases, you only need to select the single closest possible match to the actual structural item.

The customs department of almost every country has predefined specific regulatory treatments, tariffs, and non-tariff barriers based on these exact classifications.

When you apply an incorrect code on your commercial invoice, your business risks triggering severe unintended duties, hitting tight import restrictions, facing heavy administrative penalties from the Receita Federal, or experiencing outright cargo rejection at destination.

While it is not strictly illegal to omit the code from basic transport waybills in certain regions, leaving it off is a major business liability.

It is highly recommended to display the HS code clearly on your commercial invoice to give a transparent, indisputable representation of your shipment contents, especially if your product relies on complex technical components.

Consider a Brazilian SME exporting "Television Parts". While that phrasing is clear to a person, customs software cannot process it safely. Television parts break down into dozens of distinct sub-categories based on technical composition, screen type, or circuitry. To define exactly what you are shipping and ensure it clears customs without weeks of manual inspections, you must use the specific HS code.

In some instances, certain commodities may contain overlapping codes, where two or more codes apply. In such cases, the shipper only needs to select one – usually the closest possible match to the actual item. 

The customs department of almost every country would have already defined different regulations based on different classifications. When you include the incorrect code, there might be a risk of unintended duties and taxes, higher restrictions on importing, or in the worst-case scenario, rejection of entry into the destination country.

While it is not necessary to indicate your product’s HS code in any of the documents, it is always recommended to indicate it on your invoice to give a clear and accurate representation of the contents of your shipment, especially if the item you are shipping is very technical. Let’s use the example of “Television Parts” as a description on your invoice. Although the term to explain the product is straightforward, Television Parts can be further broken down into many different categories depending on the technicalities of the component. To truly define exactly which part you are shipping would require a HS code to clearly label the item.

HS Code FAQs

What does DHL Express offer? 

DHL Express handles thousands of documents, parcels, and cargoes every single day. Its global network of international specialists are well-versed in customs regulations and HS code variations so that every shipment moves on to its destination without delay. Whether you're importing or exporting, opening a DHL Business Express Account means all the hassle of customs will be taken care of for you, so that you can focus on the business of selling!