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Benefits of HS Tariff Class Number
A harmonized code is a six-digit number that correlates the section, chapter, and product to the harmonized tariff schedule. The schedule is the product of the World Customs Organization (WCO). Universally, the first six digits of the HS code are the same. Additional digits are added by countries to further describe a product. In the U.S., after January 1, 2009, the IFS 10+2 rule was put into effect adding ten additional digits to the HS code to improve goods tracking in the U.S.
Every country that has adopted the HS codes, (and there are over 200 countries now) uses these codes to identify products when shipping goods or receiving goods through their customs procedures.
HS codes offer a great deal of information outside of the actual product description and universal harmonized code. The codes also list the current duties and tariffs for the product to be shipped.
The HS tariff classification number or HS code gives current tariff costs, which are typically shown as a percentage of the unit of measure for the good or service. Materials like vehicles have a unit cost applied, and items like rock have a per ton tariff applied as a percentage.
An HS tariff classification also lists the duty, which is also applied to the unit of measure. These numbers are kept up to date by the WCO, so a search of the 5,000 classifications of the tariff schedule will list every item.
Every HS code is unique and can be queried using a number of tools. Some online tools will allow searching by code, while other more robust search engines will allow searching by product description. The HS tariff classification is very important to shippers because faulty HS codes will result in fines and potentially higher tariff charges. This may lead to goods sitting in customs while issues are resolved, and tardy distribution to resellers will result.
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