What is a HS Code?
An HS code (Harmonized System code) is a standardized international system used to classify globally traded products. It is a unique identifier that helps classify the exact type of goods being shipped and is recognized in almost every country.
HS codes are administered by the World Customs Organization (WCO) and are internationally accepted for use by customs authorities and companies to identify goods.
The HS is internationally recognised – it’s used by customs authorities to classify any product and to determine the correct taxes, tariffs and duties to be paid for exporting or importing it. Each code is a specific string of up to 10 digits, given to each type of product. This is included in your import or export declaration when you bring goods in or send goods out of the UK to other countries, including EU countries. It’s also needed for documentation such as shipping invoices, letters of credit, certificate of origin and packing lists.
Why is it important to get HS Codes right?
Using the wrong codes can lead to delays and extra charges. For example, shipping your product with the wrong commodity code could lead to hold-ups in port – and you may have to pay for the cost of storage. Or you could face a penalty if the customs authority think you’ve used the wrong code deliberately, and are trying to avoid paying taxes and duties.
Where do I find the right HS Code for my products?
HMRC provides tools and advice to help you identify the correct code for your product and the associated tariffs and taxes which will apply to it in global markets. You can click here for more information.
You can also ask for advice from your international trade adviser or those in your supply chain, such as buyers and freight forwarders. It is however important to remember that the legal responsibility for getting the right commodity code for your product, ultimately lies with you.
Please Note: HS Codes differ to HTS codes, that US Sellers will be familiar with. All HTS codes start with an HS code, but not all HS codes are HTS codes. HS is universal; HTS is U.S.-specific and more detailed for tariffs. When completing for goods being shipped to the UK or EU regions, HS Codes must be used.
Are there any differences, if shipping into the EU?
Yes, since Brexit, although the system is largely aligned internationally through the Harmonized System (HS), which is used worldwide to classify goods, the EU then expands this further using:
-
CN codes (Combined Nomenclature) or TARIC codes— 8 digits
- The first part is often identical, but the final digits can vary
- You can search EU CN codes here
Essentially: The first 6 digits are the same worldwide. For EU imports, they use the CN system which adds 2 digits and sometimes a further 2 for TARIC which further adds more specificity to ciregulatory measures. so 8-10 digits.
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