Harmonized System Codes

During the last few years, the international community has normalized import and export classifications. This international agreement led to the development of a Harmonized System of numbering import and export products. These goods are classified under approximately 8,000 different products. Every exported or imported item is assigned a unique 10-digit identification code.

The decision to develop Harmonized Commodity Coding is not a decision made only by the United States, but a decision made by the international business community. The International Harmonized Commodity Coding and Classification System (HS) was established by the World Customs Organization. HS is an international standard for world trade at a 6-digit level of detail. For instance, 10=cereals, 1005=corn, 1005.90=other corn. Each country has the option of further breaking down these international HS codes into more digits and greater detail to meet their own needs.

HS-Code is a system of progressively more specific identifiers for a commodity. For instance, concentrated frozen apple juice is assigned a 10-digit identifier. This number is an aggregate of a series of codes starting with a broad category assigned a 2-digit identifier described as Preparations of Vegetables, Fruit, Nuts etc. It is then assigned a 4-digit identifier described as fruit juices and vegetable juices, etc. The 6-digit identifier is described as apple juice.

When you ship products internationally, you are required to assign the products a code number that complies with the HS (Harmononized System) standard. This code number is to appear on the invoice along with other standard export/tariff information.

As of June 2003, the assigning of code numbers applies only to products, not to services. In other words, those who sell services (such as editing and writing) internationally do not have to assign a code number to their services. Nevertheless, this ruling is very likely to change sometime during the next decade as the international coding system is expanded.