what is hs code in shipping

The Harmonized System (HS) code is a standardized numerical method of classifying traded products used by customs authorities around the world to identify products. HS codes are used to classify physical goods for shipment to a foreign country, report shipments in the Automated Export System (AES) when the value is more than $2,500, or the item requires a license, and complete required shipping documentation such as shipper’s letter of instructions, commercial invoice, or certificate of origin. The HS assigns specific six-digit codes for varying classifications and commodities, and countries are allowed to add longer codes to the first six digits for further classification. The United States uses a 10-digit code to classify products for export, known as a Schedule B number, with the first six digits being the HS number. Each HS Code’s product category has a specific tariff rate, which is used by customs to calculate import duties. To determine what the HS Code for a product is in another country, one can search for it using the product name or description. HS codes are mandatory for shipping items into the EU from a non-EU country, and more and more countries outside of Europe are requesting them as part of the customs process.