What is a Harmonized System (HS) code?

A Harmonized System (HS) code is a standardized numerical method of classifying traded products. This classification is essential for international trade as it provides a uniform framework for categorizing goods. The HS code system is maintained by the World Customs Organization (WCO) and is used by countries worldwide to determine tariffs and gather trade statistics. Each HS code corresponds to specific products, allowing for a consistent approach to trade that facilitates customs processes, trade negotiations, and economic analysis.

This standardized method reduces confusion over product identification, helping customs officials and traders communicate more effectively about what goods are being imported or exported. The HS code also assists in determining the applicable duties and taxes that may apply, impacting the overall cost of trade and compliance with various regulations.