What are HS codes?

HS (Harmonized System) codes are essential for import and export. These are unique numbers assigned to specific goods, based on which, among other things, customs rates are calculated. And how to find them, when and where to enter them and what are the consequences of making a mistake? Read our article and learn the most important information about HS codes.

HS codes are an international system for classifying goods developed by the World Customs Organization (WCO). They enable their identification in international trade, but also determine customs rates, taxes and other requirements for specific products. In some countries, they also facilitate the customs procedure.

The standard HS code consists of 6 digits. Its structure is based on the division of goods into groups, enabling their unambiguous classification. It is assigned to product groups based on its characteristics, e.g. type of material, function or purpose.

The structure of the HS code:

The first two digits – indicate a group of goods of a similar nature (e.g. food, textiles, machinery).

The third and fourth digits – specify the goods item within the group, specifying the type of goods.

The fifth and sixth digits – indicate the subheading, i.e. a more detailed description of the goods.

Example of an HS code:

Code 841810:

84 – Machinery and mechanical appliances.

18 – Refrigerators or freezers.

10 – Refrigerators for household use.

In the European Union, including Poland, the HS system has been extended to 8- or 10-digit codes (so-called TARIC codes).

If you import or export your goods, you have to provide their HS codes in customs documents. They are also necessary for logistics companies and customs agencies if they are going to handle customs clearance on your behalf.

Information about a specific HS code has to be included in the customs declaration (e.g. SAD or in systems such as AIS/ICS), when calculating customs duties, taxes (e.g. VAT) and customs duties.

That’s not all! Codes are also necessary when checking restrictions and requirements, e.g. the need to obtain certificates, as well as for transport documentation and when invoicing an international transaction.

You can search for HS codes in the ISZTAR4 system available online. The system allows you to search for codes by product description, classification or CN code (Combined Nomenclature).

In the UK, you can check them on the Trade Tariff website: look up commodity codes, duty and VAT rates – GOV.UK

You can also find them on the World Customs Organization website or contact a customs agency, such as ours. If you have a problem with HS codes, write to us – we will help! We can also take care of all the formalities related to customs clearance on your behalf, and your role will be limited to providing us with the documents.

Incorrect assignment of the HS code may lead to delays in customs clearance due to the need to correct documents. You may also face financial penalties for incorrect declarations. Your goods may be detained for customs control, which is associated not only with stress, but above all, a waste of time and money.

Incorrectly assigned HS codes also pose a risk of overpayment or underpayment of customs duties, which may result in the need to pay additional fees with interest. Finally – legal consequences, especially in the case of goods covered by regulations, e.g. food, medicines, hazardous products.

Therefore, it is better not to risk it and in case of doubt, consult an expert.