Glossary

Glossary

What is an HS Code?

HS Code (Harmonized System Code) is a 6-digit product classification developed by the World Customs Organization, used by 200+ countries to identify what's being imported. Most countries extend it to 8 or 10 digits to set duty rates.

Structure: 6 → 8 → 10 digits

A typical HS code: 6204.62.4011 (US for women's cotton trousers)

  • 62 = chapter (apparel, knitted)
  • 04 = heading (women's suits, ensembles, jackets)
  • 62 = subheading (trousers/breeches)
  • These first 6 digits are identical worldwide.
  • 40 = US tariff line addition
  • 11 = US statistical detail

Why the right code matters

Each country sets duty rates at the 8 or 10-digit level. Wrong code = wrong duty.

Examples of dangerous miscategorization:

  • Cotton vs synthetic shirts can swing from 16.5% to 32% duty
  • "Tablet" vs "laptop" for the same device can be 0% vs 7%
  • "Auto parts" vs "specific part type" in some markets has 5-10% spread

Tools to find the right HS code

  • US: hts.usitc.gov
  • EU: ec.europa.eu/taxation_customs/dds2/
  • UK: trade-tariff.service.gov.uk
  • WCO global database: wcoomd.org

Get a binding ruling for big-volume products

If your product imports more than ~$50K/year, get a binding ruling (CBP Form 19 CFR 177 in the US, BTI in the EU). This locks in the HS classification and protects you from audit reclassification.

Calculator note

Run different duty rates against your landed cost at /calculator/b2b-margin-calculator/ to see how much an HS misclassification could cost.

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