A Guide to Harmonized System (HS) Codes

In the world of e-commerce logistics where businesses are exporting goods internationally each item within each parcel must have an accurate Tariff/Commodity/Harmonized System (HS) code to clear customs.

Harmonized System (HS) codes (also known as Tariff or Commodity Codes) are recognised by more than 200 countries globally as a standardized way of providing in-country customs officials with a clear description of each item within a shipment, regardless of language differences.

Regardless of where you ship to the first six digits of the code will be the same across all countries. Some countries expand it to 8, 10 or 12 digits for more specific classifications.

HS Codes are defined by ‘’chapter’’, ‘’heading’’ and ‘’sub-heading’’ - each element gives a numerical value to what the item is made from, what it is and what it is used for. Local classification numbers establish if duty or taxes are applicable or to collect data on the products coming into the country. Below we showcase the correct HS Code for a ‘bicycle inner tube’ (scroll below to get an example of how you can find the correct HS codes for an item you’ve sold and are sending internationally.) 

Developed by the World Customs Organization (WCO) they remove language barriers and speed up the customs process.

Clearing customs: When your product crosses a border into another country, customs authorities need to know what the goods are to determine if they can enter. The HS code provides all this information quickly and accurately.

Calculating duty owed: Different products attract different rates of duty or taxes to be paid in different countries. The HS code helps customs in any country calculate how much duty or tax may need to be paid, avoiding any unexpected costs for you or your customers.

Determining trade statistics: Governments use HS codes to gather trade statistics, helping them understand economic trends and trade balances. Statistical analysis is one of the key reasons some countries use longer HS codes.

• Be Specific: The more detailed your product description, the easier it is to find the correct HS code.
• Stay Updated: HS codes can be updated periodically, so ensure you’re using the most current codes.
• Consult Multiple Sources: Cross-reference different resources to confirm you have the right code.

Understanding and using HS/Tariff/Commodity codes correctly makes international parcel delivery much smoother as it speeds up in-country customs clearance. Familiarize yourself with the various sources to find in-country HS codes and once you’ve got used to how the system works, it becomes quicker and easier to find the correct HS codes you need when expanding into new markets.