HS code: how to find a tariff code

You’ll need to pay import taxes when importing goods from abroad — HS codes tell you exactly how much. Learn how to find the right code to use, and get a better deal for paying for goods from abroad.

 

 

What is an HS Code?

Harmonised System (HS) codes are an international standard for calculating Import Duty tax. Controlled by the World Customs Organisation (WCO), the system was first introduced in 1988.

Each HS code describes a particular trade product, allowing governments worldwide to charge the correct tariffs.

HS codes form the basis for tariff codes globally. For instance, the UK commodity codes take their first 6 digits from the corresponding HS code.

 

 

How do Countries Use HS Codes?

As of 2015, 180 countries use the HS code system for tracking trade goods. These countries use HS codes as the foundation for their tariff codes, enabling them to charge taxes on goods entering and leaving their jurisdictions. Countries also use the codes to conduct trade negotiations, monitor controlled or illegal goods, and calculate the total cost of imports.

 

How to Find an HS Code

You can find the right HS code by searching for the product. For example, if you’re looking for the HS code for a chocolate bar with nuts, you’d start by searching for the section and chapter that represents the industry. In this case, it would be Section 4 (Prepared Foodstuffs) and Chapter 18 (Cocoa and Cocoa Preparations).

Next, you’d search for the right Heading and Subheading. For this example, the Heading would be 06 (Chocolate and other food preparations containing cocoa), and the Subheading would be 32 (Not Filled). Combining these digits gives you the HS code — 1806 32.

Countries can use an additional 2-4 digits for country-specific categorizations. For example, the UK HS code relies on a ten-digit number usually called a commodity code. In this case, 1000 represents products with nuts. Combining these digits gives you the full code for our product — 1806 32 1000.

 

HS Code Format

HS codes are made up of 4 parts, totalling 10 digits. Each part provides more detailed information about the product, starting with the ‘chapter’ (which describes the industry) and ending with a country-specific code that describes the particular product.

Here’s a breakdown of the HS code for chocolate bars with nuts: 1806.32.1000.

• HS Chapter: 2 digits (18 – Cocoa and Cocoa Preparations)
• HS Heading: 2 digits (1806 – Chocolate and other food preparations containing cocoa)
• HS Subheading: 2 digits (1806.32 – In blocks, slabs or bars)
• Country-specific code: 4 digits (1806.32.1000 – containing nuts, fruits or cereal)

 

Commodity Codes, HS Codes, and HTS Codes — What’s the Difference?

• UK tariff codes help the UK government track trade imports and charge the correct tariffs on each product. If you’re planning to import goods into the UK, you’ll need the right commodity (or tariff) codes.
• HS codes are an international system for tracking trade goods. They form the basis for all tariff codes, including the first 6 digits of Schedule B numbers and HTS codes in the US. You’ll often find HS codes on invoices and shipping documents around the world.
• HTS codes are similar to Schedule B numbers but are used for importing goods into the United States. They are also made up of 10 digits and help the US government track imports and apply the correct tariffs to different products.

 

 

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