What is the harmonized system code and why do you need it?

For Filipino businesses looking to expand into international markets, understanding the Harmonized System (HS) code is essential, as this globally standardized numerical system is used to classify goods during customs clearance.

Accurately assigning the correct HS code to your products helps ensure compliance with international trade regulations, prevents costly delays at customs, and reduces the risk of penalties.

What is an HS code and why is it important?

The Harmonized System (HS) is one of the most widely adopted product classification frameworks used in international trade. It provides a globally recognized numeric coding structure that enables countries to consistently categorize goods for import and export purposes. Over 200 countries and economies, including the Philippines, utilize HS codes for determining tariff rates during customs clearance, compiling trade data, and enforcing trade regulations.¹

Managed by the World Customs Organization (WCO), the HS code system undergoes revisions approximately every five years to stay aligned with evolving global trade practices. It forms the core of the customs classification schemes used not only in the Philippines but also by major economies and trading partners worldwide.²

The difference between HS code vs. HS tariff code

While the terms “HS code” and “HS tariff code” are often used interchangeably, there are subtle distinctions between them. The HS code refers to the internationally recognized six-digit classification system developed by the WCO. However, many countries expand upon this base code to create more detailed product classifications. These are often referred to as tariff codes or national subheadings.

In the Philippines, importers use the ASEAN Harmonized Tariff Nomenclature (AHTN), which builds on the six-digit HS code by adding two additional digits for more precise regional categorization. Filipino exporters trading within ASEAN countries, such as Singapore, Malaysia, and Indonesia, must use the appropriate eight-digit AHTN code to ensure smooth customs processing and take advantage of trade agreements.

For instance, if your business is exporting dried mangoes to Singapore, the relevant AHTN code would be 0813.40.00.³

On the other hand, if you’re shipping goods to non-ASEAN countries like the United States, you must follow their own extended classification system. The U.S. uses a unique 10-digit Harmonized Tariff Schedule (HTS) code. For example, the HTS code for cane or beet sugar would be 1701.13.05.⁴

Knowing the correct version of the code, depending on the destination country, is essential for accurate export documentation and duty calculation.

How HS codes work

The WCO maintains a detailed classification framework for HS codes. Products are organized starting from broader sections, then narrowed down into chapters, headings, and finally sub-headings, with each level offering a more precise description of the goods.⁵

HS codes are structured in a hierarchical manner:

• First 2 digits: Chapter – This represents a broad category of goods. There are 99 chapters in total.
• Next 2 digits: Heading – This indicates the specific product group within the chapter. There are 1,244 headings in total.
• Next 2 digits: Subheading – It provides a detailed description of the product. There are a total of 5,224 sub-headings.⁶

For example, mango purée is classified under Chapter 20 (Preparations of vegetables, fruit, nuts, or other parts of plants). Within this chapter:

• 2007 refers to jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes obtained by cooking.
• 2007.99.30 is the specific subheading used for mango purée.⁶

The purpose of HS codes

Using the correct HS code is important for businesses in the Philippines engaged in international exports. This is why:

• Accurate calculation of taxes and duties: Proper HS code classification ensures that your products are taxed correctly. Misclassification can lead to either overpaying or underpaying duties, both of which can cause financial losses or legal consequences.
• Avoiding customs delays: Customs authorities rely on HS codes to process shipments efficiently. Incorrect codes may trigger manual inspections or document reviews, causing unnecessary delays at the border.
• Regulatory compliance: Accurate classification supports compliance with international trade regulations. This helps prevent legal issues, fines, or the rejection of your shipment due to non-compliance.

Where to use HS codes

HS codes are typically applied in the following:

1. In shipping and export documentation

HS codes are also required in international shipping documentation, such as commercial invoices, certificates of origin, and customs declarations. These codes help customs authorities verify product classifications and ensure that shipments meet all regulatory requirements during clearance.

2. For determining duties and tax exemptions

The HS code directly impacts the calculation of import duties and eligibility for tax exemptions. When the appropriate classification is indicated, the right duty rate will be applied, helping exporters minimise the risk of overpayments, penalties, or costly corrections.

3. To qualify for Free Trade Agreements (FTAs)

Proper HS code classification is also essential for demonstrating product eligibility under Free Trade Agreements (FTAs), such as the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). Using the appropriate code can secure duty-free or reduced tariff benefits, while misclassification may cause the loss of these trade advantages.

How to find an HS code

To ensure accuracy in your harmonized system codes, always consult official or reliable sources. In the Philippines, the Tariff Commission provides an online list with the AHTN code finder, a valuable tool for businesses classifying products for export.

Some logistics providers also offer digital platforms to help identify tariff codes. For instance, DHL Express offers DHL MYGTS (My Global Trade Services), a tool designed to help businesses look up HS codes, understand regulatory requirements, and estimate landed costs, all in one place.

Partner with DHL Express for international exports

Successfully navigating global trade requires precision in export documentation, compliance with international laws, and accurate classification of goods. Getting the HS code right is a crucial part of this process, helping ensure your shipments move smoothly through customs and arrive on time. If you need help with customs clearance requirements and exporting goods overseas, our team at DHL Express can offer our assistance.

With DHL Express, Filipino exporters gain access to a global logistics network, reliable delivery service, and deep expertise in customs clearance procedures, trade regulations, and product classification. Our international specialists are well-versed in country-specific HS code requirements, providing the guidance and support needed for efficient and compliant international shipping.

Whether you’re exporting to ASEAN markets, the U.S., or the Middle East, DHL Express offers the experience and infrastructure to help you expand with confidence.

Open a business account with us today to get started.