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HS Codes: Harmonized System Code of International Goods

HS Codes

The World Customs Organizations developed the harmonized system code (HS Code) or the HS Classification system is a multipurpose international naming system to classify commodities in 1988. The WCO is an intergovernmental organization set up to improve the effectiveness and competency of the customs administration. Presently 200 countries around the world use the code. 98% of the commodities traded in the world are on the list. All goods crossing international borders need to be declared at customs using the HS Codes. HS Classification system is an integral part of international trade.

The WCO maintains the HS code. The body adds new products to the code as per requirements. The code was last amended in 2017.

Customs authorities, government regulatory, market research organizations, and private organizations agencies utilize the code. The harmonized system code is used to:-


• Monitor and control goods 
• Collect customs duties
• Collect internal taxes
• Monitor of controlled goods 
• Rules of origin
• Quota control
• Trade statistics
• Economic research and analysis
• Compilation of national accounts
• Freight tariffs
• Discover new selling and sourcing opportunities.


The HS codes list describes 5300 commodities. They are classified on economic activity or component material. 

Products are classified into 21 sections. These sections are subdivided into 99 chapters. The 99 chapters are further partitioned into 1244 heading and 5224 subheadings. The chapter and sections are broad descriptions while the headings and subheadings contain a more detailed explanation.

HS Code is a six-digit coding system. The first two digits of the code help to identify the section. The third and fourth digits describe the chapter, and the last two numbers identify the heading and subheading. 

Countries can add additional 2 or 4 digits to the existing HS Code without changing the first 6 digits. The first 6 digits are the same in all countries. E.g. India uses an 8 digit code called ITC code.

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