Harmonized system code: A guide for shipping

The diversification of commodities has grown increasingly complex over the years. As globalization weaved its way into global supply chains, a standardized, universally recognised system for classifying products became essential. The Harmonized System (HS) code was thus created to meet this need, providing a detailed, uniform method for identifying products globally. This system simplifies international trade, ensuring that governing bodies and businesses worldwide can speak the same language when it comes to shipping.

What is the Harmonized System (HS) code?

The HS code is a categorization system for traded products developed and maintained by the World Customs Organisation (WCO). Under this, every product is assigned a unique code, providing a common reference point for customs authorities, aiding in the clearance of shipments and application of relevant regulations. This standardised approach creates a more organised import/export structure, offering clear guidelines for countries to implement new trade regulations.

ASEAN Harmonized Tariff Nomenclature (AHTN)

While the WCO's harmonised code provides a global standard, certain regional blocs like ASEAN have their own extensions, like the ASEAN Harmonised Tariff Nomenclature (AHTN) system for more detailed classification. This specific system is used by all ASEAN member states, including Singapore. It expands on the international HS code by adding more digits for greater specificity, which is particularly useful for regulating trade within the ASEAN region.

How to obtain the HS code for a product

Each HS code comprises a minimum of 6 digits. The first 2 digits identify the specific chapter of the HS code the commodity falls under, with a total of 21 chapters that provide a generalised description of the category. The next 4 digits comprise the heading and sub-heading within that chapter, offering more specific detail.

Since Singapore follows the AHTN, Singapore’s HS codes follow an 8-digit system, where the first 6 digits still take reference from the international HS codes, while the additional 2 digits at the end further break down the sub-headings to classify products more granularly within the ASEAN region. Commodities shipped within ASEAN normally use the 8-digit AHTN classification, but the 6-digit HS codes are also considered valid.

Here are some examples of HS codes for everyday items:

To find the correct HS code for your product, visit Singapore Customs TradeNet and search for your commodity.

How to use the HS code

It's highly recommended for businesses to include the harmonised system code in their shipping documents, such as the commercial invoice. The responsibility of providing the HS code is always on the shipper, and doing so ensures a uniform mode of clearance every time.

As you’ll find when browsing through the TradeNet portal, the list of harmonised codes is extensive, with commodities being dissected into very specific descriptions.

Taking the example of a men’s shirt listed above, there are different codes for shirts made of cotton, synthetic fibres, or other textiles. The list can go on, with over ten different codes for a single item like a shirt, each with its own meaning.

In some instances, a single product might have overlapping codes. When this happens, the shipper should only select the HS code that is the closest possible match to the actual item. Using the incorrect HS code can have serious consequences, including the risk of incorrect duties and taxes, higher import restrictions, or, in the worst-case scenario, the rejection of the shipment at its destination country.

For complex or technical items, providing the correct HS code is especially crucial. For example, the term "Television Parts" on an invoice is straightforward, but those parts can be broken down into many different categories, each with its own technical specifics. To provide an accurate definition of which part you are shipping, a precise HS code is required to clearly label the item.

MyGTS for fast, efficient shipping

As a leading express courier delivery service, DHL Express handles thousands of shipments daily. Our extensive global network is designed to process these high volumes while ensuring that parcels transit smoothly across international borders. Speed is at the core of our operations, and our customs teams worldwide are expertly trained to navigate the complexities of customs regulations and HS code variations, ensuring our network runs efficiently and without delay.

To streamline this process for our customers in Singapore, we offer MyGTS, an intuitive, all-in-one portal designed to simplify cross-border logistics. MyGTS empowers you with the tools you need for fast and efficient shipping.

MyGTS provides:

• Accurate HS Code Search: MyGTS offers an intuitive search function to help you find the correct HS code for your products, ensuring accurate classification from the start.
• Pre-Shipment Planner: This feature allows you to plan your shipments in advance and prepare all necessary documentation.
• Automatic Landed Cost Calculation: MyGTS can automatically calculate estimated landing costs, including duties and taxes, giving you a clear financial picture before you ship.

Whether you're a small business or a large enterprise importing or exporting, DHL’s MyGTS helps eliminate any guesswork when it comes to international shipping.