| The existence of HS codes has shaped and | | | | System code. The codes consist of six universal |
| modernized the business of importing and exporting | | | | numbers and an additional two, four or six digit |
| with a classification system that is universally used | | | | number based on the needs of the individual |
| and accepted for approximately 98 percent of all | | | | country. Each number can be used to calculate and |
| world trade. HS tariff classification, officially defined | | | | assess duties and taxes, determine import and |
| by the Harmonized Commodity Description and | | | | export admissibility, conduct risk assessment and |
| Coding System, is the international standard for | | | | targeting and many other informative purposes. |
| reporting goods to customs and government | | | | It is important to know how to perform a |
| agencies. Importers and exporters must perform a | | | | Harmonized code search or have the right tools to |
| Harmonized code search every time they need to | | | | do it automatically in order to be successful in |
| define and classify a shipment in order to legitimately | | | | importing or exporting. Governments use HS codes |
| get it across customs. This numeric language is used | | | | to assess customs duties, enforce domestic |
| by more than 180 countries across the world, | | | | regulations, perform risk assessment and collect trade |
| providing a universal system for transmitting data on | | | | statistics, while companies use them to determine |
| trade. | | | | landed costs of imported goods and materials, |
| HS codes were created and are administered by the | | | | identify international selling/sourcing opportunities and |
| World Customs Organization, or WCO, which is an | | | | improve procurement and compliance all along the |
| international institution based in Brussels, Belgium. | | | | supply chain. No one in the importing and exporting |
| Their HS tariff classification system applies to every | | | | world can get by without using this system, whether |
| commodity that enters or crosses an international | | | | they are directly responsible for looking up the codes |
| border. All of these commodities have to be | | | | and defining the goods and materials in the first place |
| declared to customs with a specific Harmonized | | | | or simply reliant on them. |