Harmonized System (HS) Code
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๐ This article is part of the Customs Glossary Guide |
HS Code (Harmonized System) Explained
The international standardized system of names and numbers to classify traded products.
What is an HS Code?
The Harmonized Commodity Description and Coding System, commonly referred to as the Harmonized System (HS), is an international nomenclature developed and maintained by the World Customs Organization (WCO).
It is used by more than 200 countries as the basis for their Customs tariffs and for the collection of international trade statistics. Over 98% of the merchandise in international trade is classified in terms of the HS.
The "Universal" Language
The system is designed so that the code for a specific product (e.g., a "fresh apple") is the same in every country up to the first 6 digits. This allows customs agencies worldwide to speak the same language.
Anatomy of the Code
An HS Code is built like a funnel, starting with broad categories and narrowing down to specific product details.
| Segment | Digits | Description |
|---|---|---|
| Chapter | 2 Digits | The broadest category (e.g., 08 = Edible Fruit and Nuts). There are 99 chapters in total. |
| Heading | 4 Digits | A specific grouping within the chapter (e.g., 0808 = Apples, Pears and Quinces, Fresh). |
| Subheading | 6 Digits | The Global Standard. Used by all WCO member countries (e.g., 0808.10 = Apples). |
| Tariff Item | 8-10 Digits | Country Specific. Used for national duties and statistics.
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US vs. Canada: What's the Difference?
While the first 6 digits are universal, the numbers that follow differ based on the destination country.
๐บ๐ธ United States (HTSUS)
For US imports, the code is known as the Harmonized Tariff Schedule of the United States (HTSUS). It is maintained by the US International Trade Commission (USITC).
Example: A specific type of cotton shirt might be 6205.20.2066 in the US.
๐จ๐ฆ Canada (Customs Tariff)
For Canadian imports, the code is part of the Customs Tariff schedule maintained by the Canada Border Services Agency (CBSA).
Example: That same shirt might be 6205.20.00.00 in Canada. Note that digits 7-10 often differ entirely from the US.
Using HS Codes in BorderConnect
In BorderConnect, providing the HS Code is sometimes optional (for standard freight) but mandatory for specific shipment types.
1. Mandatory for Section 321 (US)
If you are filing an ACE Section 321 (De Minimis) shipment, you must provide the HS Code. Since there is no broker involved to classify the goods, the carrier acts as the filer and must tell CBP exactly what is on the truck to qualify for duty-free entry.
2. The Built-in Search Tool
BorderConnect includes a smart HS Code search directly in the manifest creation screen:
1. Navigate to the Commodity section of your shipment. 2. In the Harmonized Code field, start typing a description (e.g., "Plastic Bottles"). 3. The system will auto-suggest valid 6-to-10 digit codes from the official HTSUS or Canadian Tariff database.
3. ACI eManifest (Canada)
For standard ACI eManifests, a detailed plain language description is usually sufficient (e.g., "Auto Parts"). However, if a carrier chooses to include the HS Code, it helps CBSA assess risk faster and can reduce the likelihood of a secondary inspection.
Official Resources
- WCO: What is the Harmonized System?
- USITC: Official US HTS Search
- CBSA: Canadian Customs Tariff