The basics of HS commodity codes

Your commodity code defines the rules around your import and export, from regulations and permits to duty rates and preferential origin. Learn about HS and commodity codes in this article.

What is an HS commodity code?

The Harmonised Tariff System was developed by the World Customs Organisation (WCO) in 1988. The objective of introducing the HS tariff was to make customs easier by classifying goods in the same way across the WCO’s 200+ members, meaning that goods could be easily identified no matter where in the world they were going.

To do this, goods would be classified using the same six-digit codes, with members of the WCO adding additional numbers for their own needs.

Using HS codes, customs would no longer need to decipher descriptions or physically inspect goods to understand what they were. Additionally, the use of numbers is globally understood, whereas relying on English or another international language is not as foolproof.

However, the six-digit HS code is only the beginning of the commodity code – to which countries add more numbers so that they can impose import tax rates, sanctions, licence requirements, and other regulations.

How is an HS code structured?

HS codes are made up of six digits, bringing together three pairs of numbers to ascertain the chapter, heading, and HS subheading for the category of goods. Using these six digits as a base, countries add their own endings for use in export and import customs clearance.

This is why you can see six-, eight-, 10, and even 14-digit variations of a commodity code on your pa