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Customs clearance has become increasingly complex over the years as the volume of goods being sent across borders has diversified. To avoid your packages being delayed at customs, you need to supply accurate data, and that means listing the products you are sending in detail. The Harmonised System code (or HS code) is designed to label all existing goods in precise detail, making it easier to identify products internationally.
Harmonised System (HS) codes are unique identifiers used to classify the exact type of goods you are shipping.
These codes were created by the World Customs Organisation (WCO) and are internationally recognised in almost every country. This global standardisation provides a common point of reference for customs and government bodies, allowing them to instil regulations consistently across HS code categories.
In turn, this creates a more organised import and export structure and offers clear guidelines for countries looking to implement new trade regulations. Essentially, a specific HS code definition helps everyone speak the same language when it comes to classifying products.
The responsibility of providing the HS code is always that of the shipper, so you’ll need to carry out a Harmonised System code lookup when you ship. You can find the HS code for your product via your country’s government website or by using DHL Express’ Global Trade Services Portal. This tool can serve as a helpful HS code finder for your shipments.
The structure of each Harmonised System code comprises six digits. The first two digits identify the chapter the HS code falls under. There are a total of 21 chapters; each chapter provides a description to generalise the category. The next four digits comprise the heading and sub-heading within the chapter, offering a more specific classification.
For instance, the chapter "01" might cover "Live Animals," while "0101" could be "Live Horses." The next two digits further refine this, such as "0101.21" for "Pure-bred breeding animals."
While the first six digits of an HS code are globally standardised, some countries or regional blocs, like those in ASEAN, may add additional digits for more specific classifications within their region.
For instance, the ASEAN Harmonised Tariff Nomenclature (AHTN)1 uses eight digits, where the first six still reference the international HS codes, but the additional two digits further break down the sub-headings. Commodities shipped within ASEAN normally use the eight-digit AHTN classification, though the six-digit HS codes are also considered valid for international use outside that bloc.
As shown in the image above, distinct codes are assigned to various commodities. For instance, a shirt might begin with a broad HS heading like '6105' for 'Men's or boys' shirts, knitted or crocheted'. The subsequent digits then specify the fabric, such as '10' for 'of cotton', leading to a code like '61051000'.
Businesses are highly encouraged to indicate the HS code in their shipping documents to ensure a uniform mode of clearance every time. You should prominently display the HS code on your commercial invoice and other relevant international shipping documents. Consider it a crucial item on your shipping checklist to ensure smooth processing.
There are thousands of different HS codes, and each commodity is further dissected into very specific descriptions. For example, if you’re shipping men’s shirts, there are categories for shirts made out of cotton, shirts made of synthetic fibres, and shirts made out of other textiles – the list goes on, totalling about 10 different codes for the item ‘shirt’.
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 departments of almost every country 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’s not necessary to indicate your product’s HS code in every document, it’s always recommended to include 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.
For example, describing an item simply as “Television Parts” on your invoice, while straightforward, can be ambiguous. To define the specific component being shipped, you would require an HS code to clearly label the item.
Understanding how to find an HS code for international shipping is one thing, but avoiding common pitfalls when using them is equally important to ensure smooth customs clearance. Here are some key mistakes shippers should avoid:
Incorrect classification: This is perhaps the most frequent error. Misclassifying an item, even slightly, can lead to incorrect duties and taxes, unexpected delays, or even seizure.
Omitting HS codes: Although not strictly mandatory on every document, omitting HS codes from key international shipping documents, such as the commercial invoice, can lead to delays in customs processing.
Using outdated codes: The World Customs Organisation updates the Harmonised System every five years2. Using an outdated HS code can result in misclassification, leading to customs issues.
The first six digits of an HS code are standardised globally by the World Customs Organisation. This ensures a common foundation for classifying goods internationally. However, some countries, like those in APAC, may add two additional digits for more specific classifications within their region.
Incorrect HS codes can lead to several issues:
Unforeseen duties and taxes: Your shipment might be subject to higher or unexpected fees.
Import restrictions: The product may face stricter import regulations than intended.
Shipment delays or rejection: In the worst-case scenario, customs officials may delay or even reject your shipment.
While not strictly mandatory, it's highly recommended. Providing the HS code on your invoice and other shipping documents ensures accurate customs clearance, minimises delays, and helps avoid potential issues with duties and taxes.
If you're having trouble identifying the right HS code, you can:
Consult your country's customs authority: They often provide resources and guidance. To look up an HS code in Ireland, refer to the EU's Taxation and Customs Union.
Use online HS code lookup tools: Many online tools, including DHL Express' Global Trade Services Portal, can help you find the correct HS code.
Yes, HS codes are used universally for classifying goods in international trade, whether they are being imported into a country or exported from it.
No, each product should have its own unique HS code that accurately reflects its characteristics and composition.
DHL Express handles thousands of documents, parcels, and cargoes every single day. Its global network of international specialists is well-versed in customs regulations and HS code variations, ensuring that every shipment reaches its destination without delay.
When you partner with DHL Express, their team simplifies the customs process for you, taking care of the complexities so you can focus on your business. Whether you're importing or exporting, opening a business account means all the hassle of customs will be expertly managed, allowing you to focus on the business of selling!
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