HS Code (Harmonized System Code)
An HS Code, or Harmonized System Code, is an internationally standardized system of names and numbers to classify traded products. The system is maintained by the World Customs Organization (WCO) and is used by more than 200 countries. In the United States, the system is extended to 10 digits and is known as the HTS (Harmonized Tariff Schedule).
Structure
- 2 digits: Chapter (e.g., 84 = Machinery)
- 4 digits: Heading (e.g., 8471 = Data processing machines)
- 6 digits: Subheading (internationally harmonized)
- 8-10 digits: National subdivision (U.S.-specific)
Why It Matters
Every imported product must be classified with an HS code for customs purposes. The code determines the applicable duty rate, whether any special tariffs apply (Section 301, reciprocal tariffs, etc.), and any import restrictions.