HS Code
Harmonized System Code - a standardized number identifying a product type for customs, used to calculate duty and clear shipments internationally.
In practice
Getting the code wrong can lead to incorrect duty charges, customs delays, or even shipment seizure - it's a globally standardized system at the first six digits, though many countries add extra digits for more specific local classification.
A shipment of cotton t-shirts is classified under a specific HS code that determines the exact import duty rate charged at the destination country's border.
Why it matters
An incorrect HS code can trigger customs delays, incorrect duty charges, or in serious cases, shipment seizure - a small detail with outsized consequences if gotten wrong.
Worth knowing
- Standardized at the first six digits worldwide; countries add extra digits for local classification.
- A customs broker or freight forwarder can help classify a product correctly if it's ambiguous.
- The same product can fall under different codes depending on material composition or intended use.
Related terms
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