HS Code: Is your company ready to expand into international trade?

December 16, 2022

If you are thinking about importing or exporting products into the global marketplace, you must first overcome some bureaucratic hurdles. Unlike domestic commercial shipments, which are usually simpler, international shipments involve customs clearance at the border.

To ensure that your products reach international customers efficiently and quickly, you must do everything possible to ensure smooth customs clearance for your products. That's what the HS code is all about.

Among industrial classification systems, the HS Code is used throughout the process of exporting goods by most of the world's trading nations.

What is the HS Code?

The HS Code is an international nomenclature for the classification of import and export products, with a standardized numerical method, which allows countries to classify traded goods on a common basis for customs purposes.

Customs authorities check these codes on the documentation accompanying imported goods. They do this for several reasons, such as:

▪ Determine the tax and tariff rules that may apply to import products.

▪ To ensure that imported products are not prohibited due to import restrictions.

▪ To control trade statistics.

Remember: you must use the HS Code to clear all goods entering or crossing any international border.

Structure of the HS Code

The HS code can be described as follows:

▪ It is a six-digit identification code.
▪ It has 5,000 commodity groups.
▪ These groups have 99 chapters.
▪ These chapters have 21 sections.

Why are HS codes important?

Using the correct HS code is of utmost importance to an importer, otherwise it may be considered by customs as a non-compliant, misleading or incorrect declaration, each of which carries its associated penalties.

The versatility of the HS code as a universal economic language has become an indispensable tool for international trade, incorporated into many customs clearance systems around the world.

The HS code system can be very frustrating when first encountered. Fortunately, companies like Crossborderit (CBIT) can help you make sure your codes are correct to facilitate your international shipment.

Book a demo here.

Damon Baca


Crossborderit (CBIT)