How to find HS codes: A guide for importers and exporters in India

What is a HS code? Harmonized System (HS) codes are a six-digit number used to classify goods for international trade and the application of tariffs. Created by the World Customs Organization (WCO), HS codes are updated once every five years and used by over 200 countries¹. 

In India, the HS code is also commonly as the HSN code. This blog will guide you through how to find your HS code for import and export, and how it supports you to find the correct duty structure to avoid any delays in supply chain. 

Why are HS/HSN codes required in global trade?

HS/HSN codes are essential in global trade as they provide a standardized system for classifying goods consistent customs procedures, duty assessments, and statistical tracking across different countries. This uniformity facilitates smoother international transactions and regulatory compliance worldwide.

The HS code features a six-digit structure, with the initial two digits representing the chapter, indicating the broad category of goods. The next two digits specify the heading within that chapter, while the last two digits denote the subheading, providing the most specific categorization at the international level. 

Countries can further extend this 6-digit code by adding more digits for their national customs tariffs and statistical purposes. In India, the extended code is an eight-digit code and is referred to as the ITC-HS code.

For example:

Take for example “ball bearings”. At the international level, their HS code is 8482.10.

Here's the breakdown:

• 84 represents Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.
• 8482 within Chapter 84 represents the heading: Ball bearings.
• .10 within the heading further specifies the subheading: Ball bearings with greatest external diameter not exceeding 30 mm.

In India, this would be extended to an eight-digit ITC-HS code, such as 8482.10.00. The additional "00" provides a specific classification for Indian customs and statistical purposes within the "Ball bearings with greatest external diameter not exceeding 30 mm" subheading.

Why is an HS/HSN code important? 

These codes are critical for several reasons:

• Determining duties and taxes: HS codes are required to calculate customs duties and other taxes applicable to imported and exported goods. The specific code assigned to a product directly influences the tariff rates imposed by customs authorities.
• Ensuring regulatory compliance: HS codes help determine which trade regulations, restrictions, and preferential treatments might apply to specific goods. 
• Facilitating smooth customs clearance: Accurate HS codes enable customs officials to process shipments quickly and efficiently. This minimizes delays and ensures goods reach their destination promptly.
• Supporting trade statistics: Governments and international organizations rely on HS codes to compile accurate and comparable local and international trade statistics. This data is vital for economic analysis and policy formulation.

How do I find my HS/HSN code for export/import?

Suppose your business deals in the import or export of products into and out of India, knowing how to find the right of products into and out of India. In that case, knowing how to find the right HS/HSN code is a necessary step to doing business. An easy way to find your HS/HSN code is to use a convenient tool like MyGTS from DHL Express, which allows you to look up HS/HSN codes based on product descriptions.

DHL Express MyGTS is a user-friendly online tool designed to help Indian businesses find their HS/HSN codes for import and export.

Here’s a quick step-by-step guide on how to find HS/HSN codes using MyGTS:

1. Access the MyGTS Tool: Visit the MyGTS website.
2. Specify your export/import destinations: Use the dropdown options provided to select the origin and destination of your shipment.
3. Specify that you are searching for tariff codes: Click on “Find my product’s tariff codes.”
4. Enter the product description: In the search bar, type a detailed description of the goods you intend to import or export. Be as specific as possible to narrow down the results.
5. Browse search results: Based on your description, MyGTS will generate a list of potential HS codes. Carefully review the options and select the code which matches your product.
6. Verify details: Once you select a code, MyGTS provides the complete HS code for exporting and importing countries. 

As a bonus, MyGTS also provides additional useful information, such as applicable import duties and taxes, as well as regulations for your HS/HSN code. It can also be used as a custom duty calculator by HS code.

What happens if the HS/HSN code is wrong when exporting?

Using the incorrect HS code can lead to challenges for your shipment:

• Fines and penalties: Customs authorities can impose significant fines and penalties for misclassification. These financial repercussions can severely impact your bottom line.
• Shipment delays: Incorrectly declared goods may be held at customs for inspection and clarification. These delays can disrupt your supply chain, leading to missed deadlines and dissatisfied customers.
• Incorrect duty calculations: An incorrect HS code can result in underpayment or overpayment of import duties and taxes. Underpayment can lead to penalties, while overpayment will affect your business's cash flow.
• Compliance issues: Consistent errors in HS code classification can raise red flags with customs authorities, potentially leading to increased scrutiny of future shipments and audits.
• Seized goods: In severe cases of misdeclaration, customs authorities may seize your goods. 

Simplify shipping with DHL Express

Accurate HS/HSN codes are a cornerstone of successful international trade for Indian businesses. Ensuring that your shipments are correctly classified can avoid costly penalties, minimize delays, ensure regulatory compliance, and foster strong relationships with your global partners.

All Indian importers and exporters can benefit from using the DHL Express' MyGTS tool to quickly and easily find accurate HS/HSN codes for their shipments. Ready to streamline your international shipping and ensure accurate customs clearance? Create a business account with DHL Express in India today and experience the benefits of reliable logistics and expert support.