HS Code stands for harmonized system code and it is used to classify the products in export import business around the world. It is developed and maintained by world customs organization. It is also known as the Harmonized System of tariff nomenclature is an internationally-standardized system of names and numbers to classify traded products. It came into effect in the year 1988.
It consists of about 5,000 commodity groups; each identified by a six-digit code, arranged in a legal and logical structure. It is used by different name in different countries such as HSN Code in India, HTS Code in the United States, Customs Tariff in China and NCM Code in Brazil.
There are 98 Chapters listed in Harmonized System and each chapter defines a specific category of a product. These chapters come into 21 Sections. The HS Code consists of 8 digits. The first two digits define the Chapter. The next two digits define the Heading. The third two digits designate the HS Sub-Heading. And the last two digits designate the Tariff Item Level. This is the explanation of 8-digit HS Code.
Harmonized System is used by more than 200 countries and economies for their customs tariffs and for the collection of international trade statistics. While 98% of the commodities in international trade is classified in terms of Harmonized System.
It is also extensively used by governments, international organizations and the private sector for many other purposes such as internal taxes, trade policies, monitoring of controlled goods, rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation of national accounts, and economic research and analysis.
Here, you can understand the structure of HS Code with the help of an example.
HS Code 10 – Cereals
HS Code 1006 – Rice
HS Code 100630 – Semi/wholly milled rice
HS Code 10063020 – Basmati Rice
HS Code 09 – Coffee, tea, mate & spices
HS Code 0902 – Tea
HS Code 090220 – Green Tea, not fermented
HS Code 09022040 – Green Tea Waste
How to Find HS Code Online?
Exim File has updated the list of HS Code or HSN Code as per the customs rule. You can find the right HS Code of your product easily upto 8-digit level from 1 to 98 chapters. Let’s take a look at them at HS Code List 2018. You can go to the following steps to know the procedure to find the HS Code of your product in one go.
- Visit the website of Exim File.
- Click on the tab available on homepage named with HS Code.
- You will find the HS Code list of 1-98 chapters.
- Search your product in the search page or manually search the list.
- The HS Code of your product will appear on the screen.
The HS code of any product is given at each level i.e. 2-digit, 4-digit, 6-digit and 8 digit level. You could either search HS code by entering product description or by 2-digit chapter code.
If you are in export import business, then you must be aware of latest HS Codes. It will help to analyse your business according to market trends. You will not face any obstacle in the dealing with the buyers/suppliers of your product.