DocInvo

HS Codes Explained: How to Classify Your Products Correctly for International Shipping

Harmonized System (HS) codes are 6-10 digit numbers that classify products for international trade. Getting your HS codes right is crucial—wrong codes cause customs delays, incorrect duty calculations, and compliance issues. This guide explains what HS codes are, why they matter, how to find the right code for your products, and common mistakes to avoid.

Whether you're shipping electronics, clothing, machinery, or any other product, accurate HS code classification ensures your goods clear customs smoothly. DocInvo includes HS code fields in every line item, helping you create compliant invoices with proper product classification.

What Are HS Codes?

The Harmonized System (HS) is an international product classification system used by customs authorities worldwide. HS codes are standardized numbers that:

  • Classify Products: Identify what type of product is being shipped
  • Calculate Duties: Determine import duties and taxes
  • Track Trade: Enable trade statistics and monitoring
  • Ensure Compliance: Verify products meet import/export regulations

HS Code Structure:

  • 6 Digits: First 6 digits are standardized internationally (same across all countries)
  • 7-10 Digits: Additional digits are country-specific (varies by destination)

Example:

  • 8409.91: Parts of engines (international standard)
  • 8409.91.10: Specific engine parts for U.S. imports (U.S.-specific)

Why HS Codes Matter

1. Customs Clearance

Customs officials use HS codes to:

  • Identify products quickly
  • Verify compliance with regulations
  • Process shipments efficiently

Wrong HS codes cause:

  • Customs holds for clarification
  • Delays in processing
  • Potential penalties

2. Duty Calculation

HS codes determine:

  • Import duty rates
  • Tax calculations
  • Tariff classifications

Wrong HS codes result in:

  • Incorrect duty calculations
  • Overpayment or underpayment
  • Potential penalties for misclassification

3. Trade Compliance

HS codes help ensure:

  • Products meet import/export regulations
  • Restricted items are properly identified
  • Trade agreements are correctly applied

4. Carrier Requirements

Shipping carriers require HS codes because:

  • They need accurate classification for customs
  • Wrong codes can cause carrier delays
  • Carriers may reject shipments with missing codes

How to Find the Right HS Code

Step 1: Identify Product Category

Start by identifying the broad category:

  • Electronics
  • Textiles/Clothing
  • Machinery
  • Food/Beverages
  • Chemicals
  • etc.

Step 2: Use HS Code Lookup Tools

Several resources help you find HS codes:

  • Official Tariff Databases: Most countries maintain online databases
  • HS Code Lookup Tools: Online tools search by product description
  • Customs Brokers: Professional brokers can help classify products
  • Product Specifications: Detailed product information helps narrow down codes

Step 3: Verify with Destination Country

  • Check destination country's specific requirements
  • Some countries use additional digits (7-10 digits)
  • Verify duty rates and regulations for your HS code

Step 4: Document Your Classification

  • Keep records of how you classified products
  • Note any special considerations
  • Update classifications if product specifications change

Common HS Code Categories

Electronics (Chapter 85)

  • 8504.40: Power supplies
  • 8517.12: Smartphones
  • 8528.72: Monitors

Textiles/Clothing (Chapters 61-63)

  • 6109.10: T-shirts
  • 6203.42: Men's trousers
  • 6307.90: Other made-up articles

Machinery (Chapter 84)

  • 8414.59: Other air pumps
  • 8471.30: Portable computers
  • 8504.40: Power supplies

Common Mistakes and How to Avoid Them

Mistake 1: Using Generic Codes

Problem: Using broad codes like "9999" or "other" instead of specific codes

Solution: Find the most specific code that matches your product

Impact: Customs holds, incorrect duty calculations

Mistake 2: Wrong Product Category

Problem: Classifying products in the wrong chapter (e.g., electronics as machinery)

Solution: Carefully identify the primary function and material of your product

Impact: Significant duty calculation errors, compliance issues

Mistake 3: Ignoring Country-Specific Digits

Problem: Using only 6-digit international code when destination requires 8-10 digits

Solution: Verify destination country requirements and use full code

Impact: Customs rejection, delays

Mistake 4: Not Updating Codes

Problem: Using old codes when product specifications change

Solution: Review and update HS codes when products are modified

Impact: Classification errors, compliance issues

Mistake 5: Guessing Codes

Problem: Estimating codes without proper research

Solution: Use official resources and verify with customs brokers if needed

Impact: High risk of errors, customs delays

Best Practices for HS Code Classification

  1. Be Specific: Use the most specific code that accurately describes your product
  2. Research Thoroughly: Don't guess—use official resources and tools
  3. Verify Destination Requirements: Check if destination country needs additional digits
  4. Document Your Process: Keep records of how you classified products
  5. Update When Needed: Review codes when product specifications change
  6. Consult Experts: When in doubt, consult customs brokers or trade experts
  7. Double-Check: Verify codes before finalizing invoices

HS Code Resources

Official Resources:

  • World Customs Organization (WCO) HS database
  • U.S. International Trade Commission (USITC) tariff database
  • European Union TARIC database
  • Destination country customs websites

Online Tools:

  • HS Code lookup tools (various providers)
  • Trade databases
  • Customs broker resources

Professional Help:

  • Customs brokers
  • Trade consultants
  • Freight forwarders

Frequently Asked Questions

Q: Do I need HS codes for all products?

A: Yes, all products in international shipments need HS codes for customs classification.

Q: What if I can't find the exact HS code?

A: Use the most specific code that closely matches your product. When in doubt, consult a customs broker.

Q: Can I use the same HS code for similar products?

A: Similar products may share codes, but verify each product individually to ensure accuracy.

Q: How often do HS codes change?

A: HS codes are updated periodically (typically every 5 years). Stay current with updates.

Q: What happens if I use the wrong HS code?

A: Customs may hold your shipment, request corrections, or assess penalties. Always verify codes before shipping.

Conclusion

Accurate HS code classification is essential for smooth international shipping. By understanding what HS codes are, how to find them, and common mistakes to avoid, you can ensure your products are correctly classified and clear customs without delay.

DocInvo includes HS code fields in every line item, helping you create compliant invoices with proper product classification. Fill in your product details, and DocInvo formats everything correctly for customs.

Related guides:

Create your invoice with proper HS codes →

Note: This guide may contain advertisements below the content. These ads support DocInvo's free service model and never appear in the invoice creation interface.