GlossaryEN1 min readUpdated: Jun 22, 2026
HS Code
The moment goods cross a border, the HS Code becomes the central reference point: it determines the applicable customs duty rate, any import or export restrictions, and how the shipment is recorded in trade statistics.
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Source: https://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx
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Definition & Explanation
The moment goods cross a border, the HS Code becomes the central reference point: it determines the applicable customs duty rate, any import or export restrictions, and how the shipment is recorded in trade statistics. The HS Code (Harmonized System) is a six-digit commodity nomenclature administered by the World Customs Organization (WCO) and applied by around 200 countries worldwide. Its structure is hierarchical: the first two digits identify the chapter (e.g. 84 for machinery), the next two the heading, and the final two the subheading. Many countries extend the six-digit base to eight or ten digits for national tariff purposes – in the EU this produces the Combined Nomenclature (CN), while the US uses the ten-digit Harmonized Tariff Schedule (HTS). Misclassification can trigger duty reassessments, border delays, or penalties, making correct tariff classification a core customs competency.
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