The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally-standardized system of names and numbers to classify traded products. It came into effect in 1988 and has since been developed and maintained.

HS CODE, is a common term in international trade, one of the most important elements to bring standardization.

Application

HS code are used by Customs authorities, statistical agencies, and other government regulatory bodies, to monitor and control the import and export of commodities through:

1.Customs tariffs

2.Collection of international trade statistics

3.Rules of origin

4.Collection of internal taxes

5.Trade negotiations (e.g., the World Trade Organization schedules of tariff concessions)

6.Transport tariffs and statistics

7.Monitoring of controlled goods (e.g., wastes, narcotics, chemical weapons, ozone layer depleting substances, endangered species)

8.Areas of Customs controls and procedures, including risk assessment, information technology and compliance.

Companies use HS codes to calculate the total landed cost of imported products and parts, and to identify selling and sourcing opportunities abroad.