Using H.S. Code effectively
The Harmonized System (HS) Code is the global language of international trade, used by Customs authorities worldwide to classify goods.
World Customs Organization has developed this digital language using English numbering system.
More than just a number, the HS Code defines a product’s identity for determining customs duty, trade policy, regulatory compliance, and export incentives.
While a product share the same 6-digit HS Code globally, each country extends it further for its own tariff and regulatory needs—highlighting why exporters must always align product description with country-specific HS classification. For example, India uses 8 digits, China uses 10 digits and some other country may use 12 digits. Note that the first 6 digits remain the same.
A correct HS Code—supported by a clear and accurate product description—ensures smooth customs clearance, prevents disputes, and protects exporters from penalties and delays, making it a critical foundation for successful cross-border trade.
H.S. code has a legal binding. A wrong HS code may invite trouble for the importer or exporter.
- Using H.S. Code Effectively
HS Code is decided by what the product is, not what you call it commercially.
- Focus on:
- Raw material
- Manufacturing process
- Function / use
- Finished or semi-finished stage
- Avoid using:
- Brand names
- Marketing names
- Local trade terms
Example:
“Designer fan” is irrelevant. Customs wants to know electric ceiling fan with motor, material, wattage, etc.
2. Always Use 6-Digit HS as Base (Global Rule)
- First 6 digits are internationally uniform (WCO).
- Beyond 6 digits (8 in India, 10 in US/EU) are country-specific.
For international contracts, invoices, and buyer communication → 6-digit HS
For Indian export benefits & compliance → 8-digit ITC-HS
Example:
a. Base HS Code (Global – 6 Digits)
HS Code: 630231
Description: Bed linen, of cotton, not knitted or crocheted
b. India (ITC-HS – 8 Digits)
HS Code: 63023100
Description: Bed linen of cotton, other than knitted or crocheted
c. United Kingdom (UK Global Tariff – 10 Digits)
HS Code: 6302319000
Description: Bed linen of cotton, not knitted or crocheted, other
3. Do Not Copy HS Code Blindly from:
- Another exporter or importer
- Freight forwarder
- Google search
- Old shipping bill
4. Keep HS Code Consistent Everywhere
Mismatch of HS code and its description will trigger alert.
Ensure same HS Code is used in all Export / Import documents:
- Invoice
- Packing list
- Shipping bill
- Certificate of Origin
- Marine Insurance
- Letter of Credit, etc.
5. Remember: HS Code Impacts Risk
A wrong HS Code may lead to:
- Examination (by Customs)
- Delay (in Customs Clearance)
- Query / Show Cause Notice (SCN)
- Penalty under Customs Act
- Loss of exporter credibility
6. Best Practice Format (Use This)
Before finalizing the HS code for your product, always check and ask yourself for the exact description with respective HS Code:
- What is it?
- Material
- Function / use
- Technical specification (where relevant)
7. Important Point
- Description proves HS Code
- HS Code alone proves nothing
- Strong description = smooth clearance
- Rewrite the Customs-friendly description
- Validate whether your HS Code is defensible
8. Use authentic sources to check your HS Code for a product
These are government / official sources, not private commercial aggregators.
· Directorate General of Foreign Trade (DGFT) – ITCHS Search –
- Customs Tariff Database (Custada)
- India Trade Portal – ITC-HS Search
- DGCI&S (Directorate General of Commercial Intelligence & Statistics)
- TRADESTAT (Department of Commerce Export-Import Data Bank)