What is an HS Code? What is the purpose of an HS Code? When do we need an HS Code? How important is the HS Code?

When engaging in international trade and e-commerce logistics, you may encounter various requirements related to customs and customs declaration. One important concept is the HS Code (Harmonized System Code) or commodity code. HS Code is a globally recognized system for classifying and coding different types of goods. This article will delve into the meaning, application, and importance of the HS Code, helping you better understand this crucial e-commerce logistics information.

I. What is an HS Code?

HS Code (Harmonized System codes) is a coding system established by the World Customs Organization (WCO) to provide unified classification and coding for commodities worldwide. The HS Code consists of six digits, with each digit representing a specific attribute of the goods. The first and second digits represent the chapter of the goods, the third and fourth digits represent the classification, and the fifth and sixth digits represent the subheading.

For example, classifying a product under HS Code 8517.12, where 8517 represents the chapter for telephones, fax machines, and similar communication devices, and .12 indicates that the product falls under the classification of fax machines.

The HS Code has a straightforward hierarchical structure and includes over 7,000 universally recognized HS codes used by more than 200 countries.

II. When is an HS Code Required?

1. Customs Declaration

When engaging in international trade, you need to submit relevant customs declaration documents to customs authorities. This includes providing the HS Code of the goods to accurately classify and levy taxes on them. Having the correct HS Code is crucial for smooth customs clearance and avoiding delays.

2. E-commerce Platform Requirements

Many e-commerce platforms require you to provide the HS Code of your products for classification and search purposes on their websites. The correct HS Code ensures that your products are displayed under the appropriate category, making it easier for consumers to find them.

3. International Logistics Operations

When arranging international logistics, logistics service providers need to know the HS Code of the goods to determine applicable customs regulations, tax rates, and import restrictions. Having the correct HS Code helps ensure smooth transportation and avoid unnecessary issues.

III. Types of HS Codes

1. Universal (6-digit) codes

The universal World Customs Organization (WCO) HS Code system consists of 21 sections covering 97 chapters. These codes represent three levels of HS coding:

Two-digit codes (chapters)
Four-digit codes (headings)
Six-digit codes (subheadings)
To achieve global uniformity in classification, these codes are supported by explicit explanatory rules.

2. Specific country (8 digits or more) codes

Specific country codes can consist of 8 to 14 alphanumeric characters, although in most cases, they are primarily numeric. Almost every country that uses the WCO Harmonized System has its own specific country coding system. Countries extend the universal codes with their own codes, often referred to as HTS codes. For example, in the United States, the tariff system is known as HTSUS.

Example: Importing basketballs to the United States, Germany, and the Bahamas

United States: 9506.62.8020 Harmonized Tariff Schedule (HTS)
Germany: 9506.62.0000 Integrated Tariff of the European Union (TARIC)
Bahamas: 9506.62.00 Caribbean Common External Tariff (CET)

The first six digits are the same, which are universal globally, and the last four digits differ based on the specific requirements of the importing country.

IV. How to Find an HS Code

1. Customs Authorities' Official Websites

Many customs agencies provide search tools or relevant information regarding HS codes on their official websites.

We can visit the official website of the Hong Kong Customs to find guidance and resources on HS codes.

https://www.censtatd.gov.hk/en/index_hs_code.html 

2. World Customs Organization (WCO) Website

The official website of the WCO offers the globally accepted HS Code system and related information. You can visit the WCO website to find detailed information and guidelines on HS codes.

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