WtraLab – Global Trade Lab

What is an HS Code? A Complete Guide for Global Traders

If you’ve ever shipped goods across borders, you’ve likely encountered the term “HS Code.” But what exactly is it, and why does it matter for your business?

What is an HS Code? An HS Code (Harmonized System Code) is a standardized numerical system developed by the World Customs Organization (WCO) to classify traded products. It is used by customs authorities in over 200 countries to identify products, apply tariffs, and track international trade statistics.

How does it work? HS Codes are structured in 6 digits, divided into three parts. The first two digits represent the Chapter (e.g., 09 = Coffee, Tea). The next two digits represent the Heading (e.g., 0901 = Coffee). The final two digits represent the Subheading (e.g., 090111 = Coffee, not roasted, not decaffeinated).

Many countries add additional digits (up to 10) for further classification at the national level.

Why is it important? The HS Code determines how much import duty you pay, whether your product requires special permits or licenses, if your goods are subject to trade restrictions or sanctions, and what trade statistics your shipment contributes to.

How to find your HS Code? You can search for your product’s HS Code through the WCO database, your country’s customs authority website, or freight forwarder assistance.

Conclusion Understanding HS Codes is the foundation of successful international trade. Getting your classification right can save you money, avoid delays, and keep you compliant with customs regulations worldwide.