HS codes

Harmonized System (HS) codes are internationally recognized numerical classifications for physical goods in international shipments. These codes are a fundamental requirement for international trade.

The HS nomenclature is multipurpose, has a simple hierarchical structure, and is published in both English and French by the World Customs Organization (WCO). It includes over 7,000 universal HS codes and is used by over 200 countries.

Keep reading to learn about HS codes, their history, and the difference between country-specific vs. universal codes.

HS code history 

HS codes originated in 1988 when the WCO adopted the Harmonized System (HS) as a new tariff classification system. According to the WCO, over 98% of global merchandise is classified using the HS code system, simplifying international trade.

Every five years, the WCO updates the Harmonized System to incorporate new innovations and technologies. Learn more about the WCO’s most recent 2022 tariff schedule update.

What HS codes are used for 

The primary use of HS codes is to determine import duties, collect international trade statistics, identify rules of origin and free trade agreements, comply with customs requirements, collect government revenue, and monitor prohibited and restricted goods.

Universal (6-digit) codes 

The universal WCO HS code system includes 21 sections across 97 chapters. These codes are structured into three hierarchical levels:

• Two-digit codes (chapters)
• Four-digit codes (headings)
• Six-digit codes (subheadings)

These codes are governed by well-defined rules of interpretation to ensure uniform classification worldwide.

Country-specific (8+ digit) codes 

Country-specific codes range from 8 to 14 alphanumeric characters but are typically numerical. Most countries using the WCO's Harmonized System have their own country-specific extensions, often referred to as HTS codes. For example, in the U.S., the system is called the HTSUS.

To understand the way HTS codes vary depending on the country of importation, consider the following example of a basketball being imported into the U.S., Germany, and The Bahamas, based on their version of the HS system:

Country-specific HS code examples

The first six digits are consistent worldwide, while the final digits vary based on the importing country's specific requirements. This distinction is crucial for international ecommerce to avoid over- or under-calculating duties or having shipments rejected or delayed by customs due to incorrect HS codes. Zoos strongly recommends classifying goods to the country-specific level.