Sign up for an absolute no-cost account and experience the future of logistics today.
Create Your Free Account!
Log in Sign up
Back

HS Codes Explained: What is a HS Code?

14-11-2025

In the world of global logistics, thousands of products cross international borders every hour. How can a customs official in Germany instantly and accurately identify, tax, and regulate a product shipped from Vietnam? The answer lies in a single, critical number: the Harmonized System (HS) code. 

For any business shipping goods internationally, understanding what a HS code is isn’t just helpful—it’s a legal and financial necessity. Getting this code wrong is one of the fastest ways to incur costly fines, trigger significant shipping delays, and damage your supply chain’s integrity.

This guide will serve as your essential manual. We will explain the structure of the harmonized system code, clarify the crucial difference between an HS code vs HTS code, and show you the correct process for an HS code lookup.

 

What is a HS Code? 

The Harmonized System (HS) code is the universal economic language for international trade. Developed and maintained by the World Customs Organization (WCO), it is a standardized numerical method for classifying traded products. Think of it as the universal passport for your product. 

Used by over 200 countries, the HS system ensures that over 98% of merchandise in international trade can be uniformly identified, regardless of language or local terminology. This single code tells customs authorities everything they need to know to: 

  • Apply the correct tariffs, taxes, and duties. 
  • Monitor controlled goods and enforce trade quotas. 
  • Collect international trade statistics. 

The Six-Digit Structure 

At its core, the international HS code is a six-digit number. This code is structured logically, with the first two digits representing the broadest category (the Chapter) and each subsequent pair of digits providing a more detailed classification. 

Let’s break down an example: HS Code 0901.21 for roasted, non-decaffeinated coffee. 

  • Chapter (First two digits): 09  
  • This identifies the broad category: “Coffee, Tea, Maté and Spices.” 
  • Heading (Middle two digits): 01  
  • This refines the category to: “Coffee.” 
  • Subheading (Last two digits): 21  
  • This provides the final, internationally recognized level of specificity: “Roasted, not decaffeinated.” 

This six-digit code is the global standard. Understanding what is hs code in shipping means recognizing that this number is the foundation for all customs declarations worldwide. 

HS Code vs. HTS Code: Understanding the Difference 

While the six-digit HS code is the universal foundation, most countries add extra digits to create a more detailed national code for their own tariff and statistical needs. This is where the crucial distinction between an HS code vs HTS code comes into play. 

  • HS Code (6 digits): The global standard from the WCO. 
  • HTS Code (8-10+ digits): A country-specific code that begins with the 6-digit HS code and adds extra numbers for national purposes. 

The most common example is the Harmonized Tariff Schedule (HTS) code used for goods imported into the United States. 

Let’s look at the HTS code meaning: 

  • Digits 1-6: The international HS code. 
  • Digits 7-8: The U.S. tariff rate classification. 
  • Digits 9-10: U.S. statistical tracking numbers. 

So, while a product’s six-digit HS code is the same everywhere, an importer shipping to the United States must declare the full 10-digit HTS code to ensure compliance. The same principle applies elsewhere: the EU uses a 10-digit TARIC code, and many other nations use 8 or 10-digit variations. For more on tariffs, see our guide on What is a Tariff?. 

The Golden Rule: Always start with the correct 6-digit HS code, then append the additional digits required by the destination country. 

HS Code Lookup: How to Find the Correct Code 

Accurate HS classification is a legal requirement, not a suggestion. Misclassifying a product can lead to severe consequences, including shipment holds, fines, and paying the wrong duties (which may lead to audits and back-payments). 

To perform an accurate HS code lookup, you need to think like a customs agent. Ask yourself specific questions about your product: 

  1. What is it? (Its common name, e.g., a wooden chair) 
  1. What is it made of? (Its primary material, e.g., oak wood) 
  1. What is its function? (Its intended use, e.g., for seating) 

Best Tools for HS Code Lookup: 

  • Expert Consultation: For complex products, the best approach is to rely on an expert. A licensed customs broker or a knowledgeable freight forwarder like Mydello can provide certainty and take on the liability of correct classification. 
  • Advance Rulings: You can apply for a legally binding ruling from the destination country’s customs authority. This provides 100% certainty on the correct classification before you ship. 

For a deeper understanding of how the HS code fits into your shipping paperwork, read our Guide to All Things Customs. 

 

Conclusion: Key Takeaways for Seamless Shipping 

The Harmonized System code is the undisputed backbone of international trade. It is the key that unlocks a product’s journey across borders. 

To succeed in global shipping, your key takeaways are: 

  • Accuracy is Law: Classification is a legal responsibility. Using the wrong code will result in delays and financial penalties. 
  • Six-Digit Foundation: The first six digits (the HS code) are universal. Always start by finding the correct 6-digit code for your product. 
  • Country-Specific Extension: When shipping to a specific market (like the U.S. or the EU), you must use their full, extended national code (HTS, TARIC, etc.) to ensure compliance. 
  • When in Doubt, Ask an Expert: The risk of misclassification is too high. Partnering with an expert logistics provider like Mydello is the safest way to protect your business. 

The information contained in this blog article is accurate as of the publishing date and is liable to change. Contact MyDello’s expert team to get the most up to date information about customs duties.