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What is Harmonized System code (HS code)? Know the meaning, types, structure, and importance

HS code is a method by which customs authorities worldwide classify export trade products. Learn more about its types, usage, and importance in the blog.

Millions of products cross borders daily, navigating complex customs and trade regulations. Behind this massive movement of goods is a universal system that keeps global trade flowing efficiently — a standardized language that harmonizes customs processes worldwide. This system is built on Harmonized System codes (HS codes). These codes determine how goods cross borders, what duties apply, and which trade agreements they fulfill. This blog post explores the meaning, types, structure, and importance of Harmonized System code. Understanding HS codes can help sellers like you confidently navigate the complexities of global trade.

What is Harmonized System Code (HS code)?

The Harmonized System code (HS code) is a global, standardized numerical method for classifying traded products. It acts like an international translator for goods, allowing customs officials, businesses, and governments worldwide to identify products consistently. This system simplifies and harmonizes customs processes, making international trade more efficient and transparent.¹

What is Harmonized System of Nomenclature (HSN code)?

The Harmonized System of Nomenclature is a globally standardized system for classifying goods in international trade developed and maintained by the World Customs Organization (WCO). An HS code is a numerical code assigned within this system.²

Difference between HS code and HSN code

The terms HS code and Harmonized System of Nomenclature code (HSN code) are often used interchangeably. Both terms refer to a numerical code assigned within the Harmonized System of Nomenclature.

India, a WCO member since 1971, initially used the 6-digit HS code for customs and central excise duties. Later, two more digits were added for more precise classification of goods related to imports, exports, and taxation. This led to an 8-digit classification code known as the ITC-HS code (Indian Trade Clarification based on Harmonized System of Coding). This extended 8-digit code is also referred to as an HSN code.³

HS code changes and recent updates

HS codes are regularly updated by the World Customs Organization (WCO) to reflect changes in global trade and the emergence of new products. Recent updates include:

● 2022 amendment: The amendments effective January 2022 recognized new product streams and addressed environmental and social issues of global concern.

● Complementary amendments: The complementary amendments to the aforementioned amendments corrected and amended the French and English versions for consistency and accuracy.⁴

Importance of Harmonized System code in international trade

HS Code plays a crucial role in facilitating international trade. It:

● Ensures uniform classification of goods across countries.

● Simplifies customs clearance, reducing processing time.

● Helps determine applicable tariffs and duties.

● Supports trade policies and international agreements.⁵

Features of Harmonized System code

Key features that make HS code an effective global trade classification tool include the following:

● The HS code follows a hierarchical structure to classify goods.

● The system covers virtually all goods traded internationally.

● The system has well defined, periodically updated rules to classify goods.

● Over 200 countries and customs territories use the HS, making it a uniform global standard.⁶

Uses of Harmonized System code

The HS code has the following uses:

● To classify physical goods for cross-border shipment.

● To complete documentation like shipper’s letters of instruction, commercial invoice, or certificate of origin.

● To determine whether a product qualifies for preferential tariff under free trade agreements.

● To conduct market research and compile trade statistics.⁷

Structure and classification of Harmonized System code

The HS code is a 6-digit code organized into sections, chapters, headings, and subheadings:

● Sections: The HS is divided into 21 sections, which broadly categorize goods.

● Chapters: Each section is further divided into chapters (99 in total), providing specific categorization.

● Headings: Each chapter contains headings, offering even greater specificity.

● Subheadings: The headings are further subdivided into six-digit subheadings, providing the most detailed level of international classification.⁸

1. Six-digit HS code

The first six digits of the HS code are standardized internationally and represent the core classification of a product. This 6-digit code is recognized and used by all participating countries.

2. Eight-digit HS code

Many countries, like India, extend the HS code to eight digits for more detailed classification at the national level, enabling finer distinctions for tariffs or statistics.

3. Ten-digit HS code

Some countries like the US further extend the HS Code to ten digits. This provides granular classification for specific tariffs and taxation.

Indian HS code classification

India uses an 8-digit HS code classification, often referred to as the Indian Trade Classification (ITC-HS). This system is based on the international 6-digit HS code, with two additional digits for additional classification. The ITC-HS is published in two schedules:

Schedule 1 (For import)

Schedule 1 of the ITC-HS outlines the classification for goods being imported to India.

Schedule 2 (For export)

Schedule 2 of the ITC-HS details the classification for goods being exported from India.

Process of documents against acceptance

Imagine a company that sells roasted caffeinated coffee. The HS code for the product will be:

● Section II: Vegetable products

● Chapter 09: Coffee, tea, maté, and spices

● Heading 0901: Coffee, whether or not roasted or decaffeinated; coffee substitutes containing coffee

● Subheading 0901.21: Not decaffeinated

● HS code (International): 0901.21

Now, if this shipment were being exported from India, the Indian Trade Classification (ITC-HS) would extend this to an 8-digit code for more detailed classification. For example:

● HSN code (India): 0901.2110 (The final 10 clarifies that the product is in bulk packing).¹⁰

How to find the right HS code for your product

To find the ITC (HS) code for your product, follow the steps below:

Step 1:

Open the GST portal and log in.

Step 2:

Click the Services > User Services > Search HSN Code option.

Step 3:

Enter a brief description of your product.

Step 4:

Check for correct heading, subheading and tariff item.

Step 5:

Get the right HS code for your product.¹¹

Consequences of incorrect usage of HS code

In case a product is classified incorrectly due to improper usage of HS code, the shipment may face border delays, seizure of products, non-compliance penalties or sometimes even denial of import privileges in the destination country.

HS code rules under GST in India

Under India’s Goods and Services Tax (GST) system, all businesses must declare HSN codes on invoices and returns. The Indian government uses HSN code for the classification of goods under GST and to levy GST as per the fixed slabs.¹²

Conclusion

HS code is an indispensable tool for facilitating international trade. It streamlines customs procedures, ensures accurate tariff application, and provides valuable data for trade analysis. For businesses engaged in global commerce, a thorough understanding of HS codes can be beneficial for compliance, efficiency, and strategic decision-making. Amazon Global Selling supports sellers by providing tools and resources to help navigate international compliance requirements. The program empowers businesses to expand their reach and tap into international markets.

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.

Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.

Guide to export with Amazon

Frequently Asked Questions

1. Why is HS code required?

If your products are being exported, it is important to have the respective HS code that is accepted internationally. Apart from being a regulation by WCO, HS code also makes it easy to store, ship and continue with customs formalities hassle-free.

2. Is the HS code different in each country?

The first 6 digits of the HS code are the same for all countries. However, additional digits are added by different countries as per their national code systems. For instance, India has an 8-digit HSN code, while the US has a 10-digit HS code. In both cases, the first 6 digits remain common for the same product.

3. Is HS code of 10-digits?

The US HS code is 10 digits and 8 digits in India.

4. Do I need to mention HS code in my export invoice?

It is mandatory to mention HS code in all shipping documents like commercial invoice, shipping bill and packing list.

5. Do all businesses need to get an HS code?

Under GST, all goods transacted in India under the purview of GST or exported to other countries are required to have an HS code.

6. Who provides HSN codes?

The Harmonized System code, or simply ‘HS code’, is the international product nomenclature developed by the World Customs Organization (WCO).

Published on December 27, 2021.
Updated on June 6, 2025.

Sources:
1. https://www.trade.gov/harmonized-system-hs-codes#:~:text=The%20Harmonized%20System%20is%20a,assessing%20duties%20and%20gathering%20statistics.
2. https://www.bajajfinserv.in/hsn-code-explained
3. https://www.dhl.com/discover/en-my/logistics-advice/import-export-advice/hsn-code-international-shipping-basics
4. https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition.aspx
5. https://www.avalara.com/in/en/resources/whitepapers/the-importance-of-harmonized-system-hs-codes-for-indian-businesses.html
6. https://www.tradefinanceglobal.com/customs/what-is-an-hs-code/
7. https://www.trade.gov/harmonized-system-hs-codes
8. https://www.shippingsolutions.com/blog/whats-the-difference-between-hs-codes-hts-codes
9. https://www.dgciskol.gov.in/Itchs.aspx
10. https://www.tradefinanceglobal.com/customs/what-is-an-hs-code/
11. https://tutorial.gst.gov.in/userguide/taxpayersdashboard/Search_HSN_SAC_Tax_Rates_manual.htm
12. https://www.indiafilings.com/learn/hsn-code-gst-harmonized-system-nomenclature/

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