What is an HS Code? A Beginner’s Guide to Harmonized System Codes

Trading with other nations often involves a lot of rules, procedures, and duties. Managing and sorting products that travel across borders is mainly done with the help of the Harmonized System Code — referred to as the HS Code. When you handle import and export, HS codes are important for putting your goods in the proper tax class and making sure they fit with all customs rules.

Here, we are covering what an HS code means, why it plays a significant role, and how to get the proper HS code for your business.

What is an HS Code?

By means of an HS Code, or Harmonized System Code, different nations group products traded among them. This system is applied by almost all countries to solve customs issues. The World Customs Organization (WCO) came up with the system to make it easier to spot goods with a standard code.

Every HS Code is made of six digits internationally and can be increased to eight, ten, or twelve digits based on each country’s system.

Example of an HS Code:

Let’s take HS code 6109.10.00 for example:

• 61 – Articles of apparel and clothing accessories, knitted or crocheted
• 09 – T-shirts, singlets and other vests
• 10 – Of cotton
• 00 – Country-specific breakdown (used in India, the U.S., etc.)

Why are HS Codes Important?

1. Customs Compliance

When officials look at HS codes, they can figure out the nature of goods. If the HS codes are wrong, this may lead to delays, being charged, or having the goods taken away.

2. Calculating your Duties and Taxes

The classification of a product will determine how much its duty will be. Proper coding guarantees the correct tariffs are chose.

3. The analysis and statistics of global trade

States and trade-related bodies rely on HS codes to oversee trade, see how goods are moved, and plan their trade activities.

4. The process of Documentation and Logistics

Companies insert HS codes on important trade documents, such as the commercial invoice, the shipping bill, and the Bill of Entry.

Structure of HS Codes

The HS Code system is structured hierarchically:

HS Code in India: 8-digit System

In India, the system is known as ITC-HS (Indian Trade Classification based on Harmonized System). It consists of 8 digits:

• First 6 digits: International HS Code
• Last 2 digits: Indian subclassification

You can easily search and find Indian 8-digit HS codes using EximPe’s HS Code Finder Tool to simplify customs documentation and compliance.

How to Find the Correct HS Code for Your Product

These are the steps you can take to find the correct HS code.

1. Make use of a legally certified HS Code search tool.

The website EximPe provides easy ways to search for products using select keywords or descriptions.

2. Look at Trade Portals and websites run by Customs from the Government.

The Central Board of Indirect Taxes and Customs (CBIC) and ICEGATE make lists of ITC-HS codes available.

3. Get in touch with Your Customs Broker or Freight Forwarder

They have knowledge that allows them to organize goods accurately and move through customs steps properly.

4. Look at the specifications of the product very closely.

• This work mainly depends on:
• Product function
• Material composition
• Type of packaging
• Intended use

Common HS Code Categories

Here are examples of popular HS code categories:

What is HS Code in Import and Export?

In both imports and exports, HS codes:

• Determine duties and taxes
• Are mandatory on shipping invoices
• Guide import/export restrictions
• Help with accurate product classification

For example:

• Importers must declare the HS code to Indian Customs while filing the Bill of Entry.
• Exporters must include it on shipping documents while filing the Shipping Bill.

What is the Purpose of an HS Code in Import and Export?

HS codes serve multiple critical functions in international trade:

• Customs Classification: They classify physical goods for shipment and customs clearance, ensuring proper handling and compliance.
• Tariff and Duty Calculation: Customs authorities use HS codes to determine applicable tariffs, taxes, and duties on imported and exported goods.
• Documentation: HS codes are required on commercial invoices, bills of lading, certificates of origin, and other trade documents.
• Trade Statistics and Market Research: Governments and businesses use HS codes to track trade flows and analyze market trends.
• Compliance and Licensing: HS codes help identify if goods require special licenses or certificates for import/export.

Using the correct HS code is essential to avoid shipment delays, fines, or misclassification disputes.

Mistakes to Avoid While Using HS Codes

• Guessing or Assuming Codes – Always validate with a trusted source.
• Using Outdated Lists – Use updated HS code lists that reflect 2025 changes.
• Misclassifying Products – Incorrect classification may trigger red flags with customs.

How to Find Your HS Code

Finding the right HS code for your product is crucial and can be done through several methods:

• Online Search Tools: Platforms like the U.S. Census Bureau’s Schedule B Search Engine, Customs Info Database, or tools provided by logistics companies such as DHL MyGTS and FedEx Ship Manager can help identify HS codes
• Government Customs Websites: Many countries provide tariff lookup tools or customs rulings to assist exporters and importers.
• Consulting Experts: Customs brokers, freight forwarders, or trade specialists can provide guidance on the correct HS code classification
• Using EximPe’s HS Code Finder: EximPe offers a quick solution to find 8-digit Indian HS codes for international trade classification, duties, and customs documentation, simplifying the process for businesses expanding globally.

Conclusion

Everyone involved in international trade, including importers, exporters, and logistics people, needs to grasp what HS codes do. The HS code forms the backbone of documentation needed for the global trading system.

With the use of EximPe, you do not need much time to accurately categorize goods and reduce costs. Get started now in making your trade operations less complicated.

FAQs: HS Code & Its Uses in Trade

What is an HS Code?

An HS code is a standardized number used worldwide to classify products for import and export. It determines customs duty, taxes, and compliance.

What is the meaning of HS Code?

HS Code means Harmonized System Code, developed by WCO to create a universal system of naming and coding traded products.

Where can I find the HS code list for Indian products?

You can access the Indian HS code list through CBIC, DGFT, or tools like EximPe’s HS code search.

What is the use of HS code in import and export?

HS codes help in classifying products accurately, determining tariffs and duties, and ensuring compliance with customs laws.

Are HS codes different in every country?

The first 6 digits are standard globally. However, countries like India add extra digits (up to 8 or 10) for national classification.

Can the wrong HS code affect my shipment?

Yes, incorrect HS codes can lead to fines, delays, or overpayment of customs duties.

How can I search for the right HS code in India?

You can use official government sources or try the EximPe HS Code Finder to search by product name.

What’s the difference between HS Code and HSN Code?

HS Code is used internationally, while HSN (Harmonized System of Nomenclature) is India’s GST-specific classification.

Is the HS code required for GST filing?

Yes, for businesses under GST, HSN codes (derived from HS codes) must be mentioned in invoices and returns.

How often are HS codes updated?

The WCO updates HS codes every five years. Countries may issue annual revisions at the national level.