An HS code (Harmonized System), also known as an SH code, is a code used by customs authorities for product classification . This is how they identify products entering and leaving a country. Each product has a unique combination of numbers used for import and export shipments.
The correct commodity code is crucial because it determines the amount of customs duties you must pay and whether you need special permits or certificates.
If you want to learn more about international shipping terms, we recently published an International Shipping Glossary to help you with your deliveries.
Why it is important to have an HS code
Now that you understand what HS codes accurate cleaned numbers list from frist database are and how to use them, you’re probably wondering why they’re so important. After all, who cares if you use the right code? The fact is, it’s critically important, both legally and commercially.
Using the right HS code will help ensure smooth customs clearance of your packages , as well as ensure product compliance and protect you from additional charges.
Legal implications of HS codes
In most countries, the importer (the customer in the case of e-commerce) is responsible for ensuring that the goods have the proper customs tips on how to attract more customers and sell more documentation. This obviously includes the HS code.
In practice, the average customer is unaware of the existence of HS codes or other commercial invoices. This means that the seller must ensure that they can fulfill their part of the contract, in other words, deliver the product.
For practical purposes, the use of the appropriate HS code (and any additional digits) becomes the responsibility of the seller .
If you do not use the correct HS code, you and your customer may face legal consequences:
- Fines for non-compliance
- Seizure of goods by customs authorities
- Import refused
Faced with such risks, it’s wise to be business sale lead compliant. Always include the appropriate HS code on your customs documents. For example, if you sell chips or electronic parts, make sure you use the electronic HS code; if you sell jewelry with mineral stones, use an HS code that matches the type of stone, and so on.