The role of HS codes in international shipping and customs
In the world of international shipping, HS codes, or Harmonized System Codes, are a crucial element. These codes are used by customs authorities to classify goods and determine import duties and VAT. At Cargoplot, we frequently receive questions about what HS codes are, how to find the correct one, and how to ensure they are accurate. This guide provides a complete overview of HS codes and how to use them correctly.
What is an HS code and why is it important?
An HS code is a unique, standardized numerical code used worldwide by customs authorities to identify goods. When importing or exporting goods, you are required to provide the correct HS code to customs. The code specifies the type of product and determines the applicable import duties and other fees.
Examples of HS codes:
- 9113 20 00 00: Silver watches.
- 8601 20 00 00: Locomotives.
- 7116 20 11 00: Bracelets with gemstones.
A basic HS code consists of six digits, which are uniform worldwide. In some regions, such as the EU, additional digits are added for further classification. For instance, importing bicycles from China (HS code 8712 00 30 90) may incur a 48.50% tariff.
How to find the correct HS code
Choosing the correct HS code is essential to avoid customs delays or unexpected fees. Follow this step-by-step guide to determine the right code for your goods:
Step 1: Ask your supplier
Check with your supplier to see if they can provide the HS code for your product. Often, they already have this information.
Step 2: Use a reliable database
Visit the Access2Markets database. This tool provides detailed information on product categories and their associated HS codes.
Step 3: Verify additional digits
For European trade, additional digits may be needed to further specify your product. Choose the code that best matches your goods.
Step 4: Review applicable tariffs
Examine the associated import duties and tariffs for your product. This step ensures you are fully aware of all costs involved.
Practical example: Determining an HS code
Suppose you are importing leather handbags from China. Here’s how you can find the correct HS code:
Step 1:
Visit the Dutch Customs website and identify the appropriate section. Handbags fall under Section VIII - Leather Goods and Travel Items.
Step 2:
Select the relevant chapter, such as Chapter 42, which includes leather goods. Then refine your selection by choosing the category that best describes your product, such as synthetic leather handbags.
Step 3:
The resulting HS code is 4202 21 00. Use this code, along with the required documentation, for customs clearance.
What if you can’t dind the HS code?
Determining the correct HS code for your product can sometimes be challenging. If you’ve explored the available resources and are still unsure, Cargoplot is here to help. Contact us via chat, email, or call us at +31 (0)85-0608426 for assistance.
Why is using the correct HS code important?
Providing the correct HS code ensures:
- Smooth customs clearance.
- Avoidance of unexpected import duties or penalties.
- Accurate shipping cost estimates.
By using the correct HS code, you not only streamline the customs process but also gain better control over your logistics and finances.
