Customs 101: What is HS Code?
HS Codes are crucial for international trade. Find out why it's important to pay attention to these codes and learn how to add the correct one to your shipment.
HS Code or Harmonized Commodity Description and Coding System: is a code used by customs worldwide. It helps them categorize the products you’re importing or exporting.
This code has six or more digits, and is important for properly categorizing and identifying your items as they go through customs. This is a standardized system of names and numbers that vary in length depending on country and use.
For more info on country-specific code variations, click here to explore FAQ:
When you need a HS Code for import and export?
You’ll need it for international import and export shipping tasks such as:
- Completing shipping documents such as a shipper’s letter of instructions, a commercial invoice or a certificate of origin
- Determining duty rates
- Identifying customs duty relief and exemptions
- Qualifying for manufacturer/assembler tariff provisions
- Qualifying for Free Trade Agreement (FTA)
- Conducting market research and trade statistics
Why is a HS Code important?
For you
To correctly calculate taxes and duties on your international shipments
For customs
To easily identify what you are shipping and apply any necessary restrictions
Is the code missing or incorrect on your shipping documents? Your receiver or customer might end up paying the wrong tax, causing shipment to delay and put you at risk of:
- Excessive fines and penalties
- Goods confiscation and potential anti-dumping/countervailing duties without prior notice
- Missing out on free trade agreement benefits
- An audit if customs agents identify potential warning signs in your entry filings
How to find a HS Code
The HS Code for a product may be different in your country compared to your recipient’s. To avoid confusion, you should get the code from the recipient’s country.
FedEx can help with finding your HS Code in 4 simple steps*
- Step 1: Head to FedEx Ship Manager™ at fedex.com
- Step 2: Log in to your FXE account (Don’t have an account? Sign up now!)
- Step 3: Enter ship destination and item description
- Step 4: Click on HS Code field for your suggested number
*Only applicable for full container load owners.
You could use HS Code search tools such as WCO Trade Tools, FindHS.Codes, Harmonized System (HS) Codes Lookup & Finder.
FAQs
Want to know more? Here are some frequently asked questions.
More than 212 countries around the world use the code as a golden standard. See a complete list of countries, territories and economic unions using the code here.
The HS Code might have different names depending on where the shipment is going and who is in charge of it. Some of these names include Harmonized Tariff Schedule code (HTS), Harmonized System Nomenclature code (HSN), commodity code, or tariff.
Regardless of the name, the description of your products determines the HS Code. This code is important because it determines the duty and tax rates that apply to your shipment.
HS Codes are different between countries and can be longer than six digits. Here are some of the variations you might come across:
- ASEAN countries may use the standard six-digit codes or the eight-digit ASEAN Harmonized Tariff Nomenclature (AHTN)
- AU importers have to self-assess the correct customs tariff category of imported goods or face penalties
- European export codes require eight digits
- European import codes require 10 digits
- U.S. declarations require 10 digits
As the exporter, it's your responsibility to ensure the correct HS Code is used. Incorrect codes can lead to penalties, delays, and even the loss of trade agreement benefits.
Three ways to avoid making common HS Code mistakes:
- Using government websites, HS Code finder tools or FedEx Ship Manager™ to find the right code
- Make sure to stay informed about changes in tariff laws. The customs HS Code list gets updated every five years by the World Customs Organization (WCO).
- Partnering with a reliable customs broker who knows the right HS Code for your shipments - complying with all import/export regulations
- FedEx always refers to the invoice for HS Code declaration. If there's no code on the invoice, FedEx will declare the code to the best of our knowledge.
- If the duties and taxes for a shipment go beyond the liability amount set for the local market, FedEx will contact the customer before clearing the shipment.
- If you use the wrong HS Code and end up paying less in duties, you may need to inform FedEx for a declaration amendment. Regardless of fault, the importer is responsible for making the necessary changes.
Any changes after shipment clearance may be approved by the State Customs Director on a case by case basis.
We’ve got more resources to help you navigate import and export like a pro:
- Customs tools that make shipping abroad a breeze.
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