HS Codes Explained: How to Find Yours Correctly and Avoid Costly Customs Delays
Getting your HS code wrong is like sending your shipment into a maze blindfolded. A simple six-digit mistake can lead to weeks of customs delays, unexpected fines, or your goods being rejected entirely. Here’s how to get it right the first time.
What Are HS Codes and Why Do They Matter?
HS (Harmonized System) codes are an international product classification system used by customs authorities worldwide. Think of them as a universal language for products. Every item you ship needs one.
Why accuracy matters:
Determines your import duties – wrong code, wrong duty calculation
Affects customs clearance speed – inaccurate codes trigger manual inspections
Impacts trade statistics – governments track imports/exports using these codes
Controls restricted items – some codes require special licenses
The 6-Digit Breakdown: Understanding the Structure
Let’s decode “640319” – Leather athletic footwear:
First two digits (64): Chapter – Footwear, gaiters, and the like
Next two digits (03): Heading – Footwear with outer soles of rubber/plastics
Final two digits (19): Subheading – Sports footwear, leather upper
Countries may add extra digits for more specificity, but the first six are universal.
5 Common HS Code Mistakes That Cost Businesses
1. Using Supplier’s Code Without Verification
Your Chinese supplier might provide a code optimized for Chinese exports, but your destination country might classify it differently.
2. Choosing Between Similar Products
Is a smartwatch a “timekeeping device” (91.xx) or “communications equipment” (85.xx)? This distinction can mean a 10% duty difference.
3. Ignoring Product Composition
A “wooden table” (94.xx) with a marble top becomes “stone furniture” (68.xx). Always classify by the predominant material.
4. Overlooking Product Function
A decorative vase (69.xx) versus a flower vase (70.xx) shows how function changes classification.
5. Using Outdated Codes
HS codes update every 5 years. Using 2021 codes in 2024 will cause immediate rejection.
Practical Steps to Find Your Correct HS Code
Step 1: Start With Your Country’s Customs Website
US: USITC Harmonized Tariff Schedule
EU: TARIC database
Canada: CBSA Tariff
Australia: Australian Customs Tariff
Step 2: Use Precise Product Descriptions
Instead of “men’s shirt,” search “men’s woven cotton shirt” or “men’s knitted polyester shirt.”
Step 3: Work From General to Specific
Start with broad categories (chapter)
Narrow down by material (heading)
Specify exact type (subheading)
Step 4: Verify With Multiple Sources
Cross-check your finding with:
Customs ruling databases
International trade databases
Industry association resources
Real Example: Classifying a “Gaming Chair”
Wrong approach: Searching “chair” returns hundreds of results.
Correct approach:
Identify it’s furniture (Chapter 94)
Determine it’s for seating (Heading 94.01)
Specify it’s not medical, dental, or barber chairs
Confirm materials – mesh fabric, metal frame, plastic wheels
Final code: 9401.79 – Other seats, with metal frames
When to Seek Professional Help
Consider getting expert assistance if your product:
Could be classified under multiple categories
Contains new technology not clearly defined
Falls under restricted categories
Has high value where duty savings matter
Is part of a large, recurring shipment
Your HS Code Checklist for Every Shipment
Verified code matches product composition
Checked latest edition of HS nomenclature
Confirmed code with destination country’s database
Documented reasoning for code selection
Included detailed product description on commercial invoice
The Bottom Line
Spending an extra hour verifying your HS code can save you thousands in duties, prevent costly delays, and keep your supply chain moving smoothly. When in doubt, err on the side of caution and seek clarification.
Remember: Customs authorities assume you’re the product expert. It’s your responsibility to classify correctly.