Home / Logistics Knowledge / HS Codes: How to Classify Your Goods Correctly
Your HS code decides your duty rate, your permits, and whether your shipment is even allowed in. Getting it right is the foundation of every customs entry.
The Harmonized System is a global product nomenclature managed by the World Customs Organization. The first six digits are international; countries add extra digits for their own tariff lines (for example, the U.S. uses 10-digit HTS codes, the EU uses 8- or 10-digit TARIC codes).
| What the code controls | Why it matters |
|---|---|
| Duty rate | Different codes mean very different tariffs |
| Permits and restrictions | Some codes trigger licensing or bans |
| Trade agreement eligibility | Preferential rates depend on the code |
| Statistics and compliance | Wrong codes draw audits and penalties |
The GRI are a fixed hierarchy: classify by essential character and specific description before general ones, and never classify on the basis of intended use unless the heading says so. Following them in order prevents most disputes.
Misclassification can mean over- or under-paid duty, shipment holds, and penalties. Keep a classification memo documenting why each code was chosen - it is your defense in an audit.
The first six digits are international; the extra digits vary by country, so always use the destination's full code.
HS is the 6-digit international system; HTS is the U.S. 10-digit version built on top of it.
Use it as a starting point, but verify against the destination tariff - the supplier may use their own country's code or guess.
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