Harmonized System

Harmonized System or HS describe commodity and coding systems. It also means an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO) , an independent intergovernmental organization with over 170 member countries based in Brussels, Belgium.

Harmonized System or HS is usually used for :

  • Customs tariffs
  • Collection of international trade statistics
  • Rules of origin
  • Collection of internal taxes
  • Trade negotiations
  • Transport tariffs and statistics
  • Monitoring of controlled goods
  • Areas of Customs controls and procedures, including risk assessment, information technology and compliance.

For those beginner in HS system, the 2 digits of HS is normally used for general calculation of statistic of trade. The Codes have been revised through the years. So if it's necessary to reference a code related to a trade issue from even a few years ago, one has to make sure the definition set being used matches the code.

Below is a 2 digits HS code for learning