Cross-border E-commerceDec 3, 2023

What is an HS Code? The Key to Success in Cross-Border E-Commerce

In this article, we will provide a clear explanation of the indispensable "HS Code" in the world of cross-border e-commerce. By reading this article, you should gain a clear understanding of what an HS Code is, why it is important, and how to find it.

What is an HS Code?

The HS Code, short for "Harmonized System Code," is an internationally standardized system of names and numbers for classifying traded products. These codes are used in customs procedures to categorize products in a standard manner and are essential for assessing tariffs and taxes. Based on the international HS Convention, these codes are a mandatory element for international shipping. ※For international mail or postal items, HS Codes are not mandatory. However, when sending items of monetary value to certain countries or regions in Europe, for example, not including the HS Code may lead to customs in the destination country or region deeming the information insufficient. Additionally, in countries outside Europe, this could lead to delays in customs procedures or additional tariffs.

The Format of HS Codes

HS Codes are represented in a 0000.00 format (4 digits + "." + 2 digits). These codes consist of the "Category (first 2 digits)," "Heading (first 4 digits)," and "Subheading (first 6 digits)," which are standardized globally. Beyond 6 digits, countries may add additional digits for their own use.

Example 1: Rice crackers and senbei (prepared foodstuffs) are assigned the HS Code "1905.90."
Example 2: Handbags with outer surfaces of leather are assigned the HS Code "4202.21."

The Role of HS Codes

Calculation of Tariffs: HS Codes are used to determine the tariff rates applicable to imported goods. Using the correct code ensures the proper calculation of tariffs.
Utilization of EPAs: HS Codes are also important for utilizing "Economic Partnership Agreements (EPAs)," which offer preferential tariff rates. When using EPAs, it is necessary to include the HS Code on the "Certificate of Origin."

How to Find HS Codes

To find HS Codes, websites like https://hts.usitc.gov/ are useful. Here, you can search for the appropriate HS Code based on the type and characteristics of the product.

Conclusion

HS Codes are an essential element in conducting cross-border e-commerce. Understanding and using these codes accurately enables smooth international transactions. We hope this blog will assist you in your cross-border e-commerce endeavors.

At AnyLogi, we provide the "AnyLogi" automated overseas shipping platform and support for cross-border e-commerce. Utilizing the AnyMind Group's global offices and logistics network, we accelerate the overseas expansion of brands. We offer one-stop support for brands' international development, including operational support utilizing our local e-commerce and marketing expertise, as well as designing commercial and logistics bases.

AnyLogi has a wide range of materials related to cross-border e-commerce.