The Harmonized Commodity Description and Coding System (HS) is an international nomenclature developed by the World Customs Organization (WCO). It comprises over 5,000 commodity groups.
Structure of an HS Code
Every internationally traded good has a 6-digit base code that is recognized in 200+ countries.
| Digits | Hierarchy | Example (Coffee) |
|---|---|---|
| 1-2 | Chapter | 09 (Coffee, tea, maté and spices) |
| 3-4 | Heading | 09.01 (Coffee, whether or not roasted or decaffeinated) |
| 5-6 | Subheading | 0901.11 (Coffee, not roasted: Not decaffeinated) |
HTS vs. Schedule B (US Perspective)
While the first 6 digits are global, individual countries append digits for their own tariff and statistical tracking.
- HTS (Harmonized Tariff Schedule): Used for imports into a country. Dictates the duty rate. (Usually 10 digits).
- Schedule B: Administered by the US Census Bureau, used specifically for tracking US exports. (10 digits).
The Cost of Misclassification
Declaring the wrong HS code to bypass high tariffs is customs fraud. Consequences include shipment seizures, massive fines, and revocation of import privileges. If unsure, request a Binding Ruling from customs authorities.