What is HS Code?

HS code, the short for Harmonized System code is a numerical code used by customs worldwide to identify and categorize import and export shipments.

HS Code is being formed with 10 digits of numbering with below categories.

Indeed, the HS code can be used internationally for your cargo, though different countries may have their own variations. Typically, the first six digits remain consistent across regions, while the final four digits may differ depending on the country and its specific classification

So What is HS code used for?

1. Customs and Tariffs: It helps determine the correct duties, taxes, and tariffs that should be applied to imported or exported goods. Customs authorities use the HS code to assess and regulate shipments.

2. Trade Statistics: The HS code system is used to track and compile global trade statistics, allowing countries and international organizations to monitor and analyze the flow of goods across borders.

3. Regulatory Compliance: Many countries have specific regulations related to product safety, environmental standards, or health requirements that are tied to HS codes. This ensures that products meet necessary criteria before they are allowed to enter a market.

4. Inventory and Supply Chain Management: Businesses use HS codes to streamline inventory management and logistics, as well as to communicate with international suppliers, customers, and freight forwarders.

5. International Agreements and Trade: The HS Code facilitates the negotiation and implementation of international trade agreements, ensuring consistency in product categorization between trading partners.

   
   

In essence, the HS code plays a critical role in simplifying and standardizing international trade, making it easier to manage goods across borders and ensure compliance with various regulatory and financial systems.

How do you identify your cargo correct HS code?

• There is many ways of securing your product HS code in Malaysia (Customs Ruling)

• Searching for the correct HS code for customs declaration  (JKDM HS Explorer or Tariff finder)

• Physical customs officer advise , Etc