HS Code

What is HS Code?

Importance of HS Code?

Where to find HS Code?

Usages of HS Code?

What is HS Code?

The Harmonized System (HS) code is an internationally standardized system of names and numbers to classify traded products. It was developed and is maintained by the World Customs Organization (WCO). The HS code is used by customs authorities around the world to identify products for the application of duties, taxes, and regulations.

The HS code consists of six digits, which are further extended to include additional digits for a more detailed classification. The first two digits represent the chapter, the next two digits represent the heading, and the final two digits represent the sub-heading.

The Indian version of the Harmonized System (HS) code extends the internationally standardized 6-digit HS code to an 8-digit level to provide more detailed classification. India has adopted the 8-digit HS code structure as part of its Customs Tariff, known as the Indian Trade Classification (ITC) code.

Structure of Indian HS Code:

Component	Description	Example
Chapter	Broad Categories	01 (Live Animals)
Heading	More Specific Categories within the chapter	01.01 (Live Horses)

Component	Description	Example
Sub-Heading	Even more specific Categories	01.01.10 (Pure-Breeding Animals)
8-Digit ITC Code	Further detailed Classification	0101.10.10 (Pure - Bred Breeding Horses)

Key Information for Indian HS Code :

Total Chapters: India uses 99 chapters in its Customs Tariff, ranging from Chapter 01 to Chapter 99.

Total Headings: Each chapter contains several headings. The total number of headings varies across chapters.

Total Sub-headings: Each heading contains several sub-headings. Again, the total number of sub-headings across headings within different chapters.

Example: For "Fresh Mangoes," the classification would typically fall under:

Chapter: 08 (Edible fruit and nuts; peel of citrus fruit or melons)

Heading: 08.07 (Melons (including watermelons) and papaws (papayas), fresh)

Sub-heading: 08.07.10 (Melons, fresh)

8-digit ITC Code: Depending on the specific type of mango or further detail, the code might be something like 0807.10.00 for watermelons or 0807.10.90 for other melons. Mangoes are typically classified under 0804.50.1 fresh mangoes.

So, for fresh mangoes, the 8-digit ITC code would likely be 0804.50.10

Importance of HS Code

A Table highlighting the importance of HS Code

Importance	Description
Uniform Classification	Ensures a standardized classification of goods globally, facilitating international trade.
Custom Clearance	Essential for customs authorities to determine duties, taxes, and regulations for imported/exported goods.
Trade Statistics	Enables accurate collection and analysis of trade data by governments and international organizations.
Risk Management	Helps customs identify high-risk shipments and enforce regulations effectively
Tariff Calculations	Determines applicable tariffs based on product classification.
Trade agreements	Used to determine eligibility for preferential tariffs under trade agreements.
Consumer Protection	Ensures accurate product labelling and protects consumers from counterfeit or hazardous goods.
Supply Chain Management	Assists businesses in managing inventory, logistics, and compliance across borders.