we’ll explore what HS codes are, how they work, why they matter, how they differ from other systems like HTS and TARIC, and how Daguer Logistics uses HS codes to streamline your ecommerce fulfillment.
International trade relies heavily on the ability to identify, classify, and process billions of goods moving across borders every day. One of the most important tools in this process is the Harmonized System (HS) code.
At Daguer Logistics, we help ecommerce brands across the United States, Canada, and globally ensure their products are accurately classified and compliant with international customs regulations. Accurate HS coding is key to avoiding costly shipping delays, fines, or improper tariff charges.
In this article, we’ll explore what HS codes are, how they work, why they matter, how they differ from other systems like HTS and TARIC, and how Daguer Logistics uses HS codes to streamline your ecommerce fulfillment.
The Harmonized System (HS) code is a standardized, six-digit numerical system used to classify traded products. Created and maintained by the World Customs Organization (WCO), the HS code system is used by over 200 countries and economies worldwide to:
· Assign customs tariffs
· Track import/export statistics
· Facilitate trade compliance and documentation
With more than 5,000 distinct product categories, HS codes allow customs authorities to easily identify what each shipment contains and how it should be treated under national laws.
The name "Harmonized System" refers to its global uniformity. While customs laws vary country by country, the HS code provides a shared language for classifying goods. It supports smoother cross-border trade by reducing confusion about product categorization.
An HS code is typically composed of six digits, broken into three hierarchical levels:
1. Chapter (first 2 digits): Broad product category
2. Heading (next 2 digits): More specific product grouping
3. Subheading (last 2 digits): Most specific identification
· Chapter (70): Glass and glassware
· Heading (09): Glass mirrors
· Subheading (10): Rear-view mirrors for vehicles
· Full HS code: 7009.10
Some codes are not broken into subheadings, in which case the final two digits are often "00" (e.g., 0504.00).
Find the accurate HS code for your products by using this search tool.
· Completing commercial invoices and shipping documents
· Declaring goods to customs authorities
· Calculating duties and taxes
· Determining eligibility for free trade agreements (FTAs)
· Ensuring compliance with international trade laws
· Automated shipping label generation
· Customs declaration and clearance
· Product-level compliance management
· HS classification audits with customs brokers
While HS codes form the global baseline, many countries have their own expanded versions:
· Adds 4+ digits beyond the HS code
· Used for imports into the U.S.
· Required to determine exact U.S. tariff rates
· Adds subdivisions to the HS code within the European Union
· Used for classifying goods and applying the Common Customs Tariff PK Canada Customs Tariff
· Based on HS codes, extended to 10 digits for Canadian imports
Daguer Logistics ensures your products are correctly coded whether they are entering the U.S., Canada, or other global markets.
The WCO updates the HS nomenclature every five years. The 2022 version introduced 351 amendments to reflect:
· Heading 88.06: Drones (Unmanned Aerial Vehicles)
· Subheading 8517.13: Smartphones
· Heading 84.85: 3D printers (previously scattered across multiple headings)
· Heading 38.22: Diagnostic kits and reagents (e.g., malaria, COVID-19)
These changes underscore the importance of keeping HS codes current. Outdated codes can result in:
· Customs delays
· Incorrect duty calculations
· Compliance issues
Daguer Logistics proactively updates all product classifications in our system when HS changes are published
Use the Schedule B number, which contains the 6-digit HS code, to:
· Report shipments in the Automated Export System (AES)
· Complete documents like the commercial invoice or certificate of origin
· Classify goods for export control purposes
· Determine import duties and tariffs
· Ensure compliance with regulations like FDA, USDA, or CBP
· Leverage trade preference programs (e.g., USMCA, GSP)
"Understanding HS Codes is just one part of mastering international shipping. If you're also navigating DDP (Delivery Duty Paid) terms, check out our guide on what DDP means in shipping and how it affects your eCommerce deliveries."
Incorrect or outdated HS codes can cause:
· Overpayment of duties
· Fines or penalties for misclassification
· Seizure or return of goods
· Border delays and customer dissatisfaction
At Daguer Logistics, we work with customs brokers and compliance experts to validate your HS codes, reducing the risk of costly errors and ensuring your goods flow smoothly through customs.
✔️ Product Classification Support: We help brands accurately classify all products during onboarding, ensuring each item has a verified HS code.
✔️ Ongoing Compliance Monitoring: We monitor updates to HS code systems and proactively flag outdated codes.
✔️ Country-Specific Tariff Support: We identify the correct extensions to HS codes for each country (HTS, TARIC, etc.) so you can anticipate duties.
✔️ Customs Broker Partnerships: We work closely with licensed brokers to review and verify your product classifications.
✔️ HS Code Training & Audits: We offer training resources and classification audits to help your team stay informed and compliant.
"For better inventory control and fulfillment accuracy, don’t miss our tips on SKU tracking in eCommerce to help you organize, locate, and monitor your products more efficiently."
The Harmonized System is the backbone of global trade classification. For ecommerce brands shipping across borders, using the correct HS code is essential to ensuring compliance, minimizing costs, and avoiding customs delays.
At Daguer Logistics, we don’t just ship your goods, we make sure they’re classified, documented, and delivered in full compliance with international trade laws.
Whether you’re just starting to expand into international markets or managing thousands of cross-border shipments a month, our fulfillment network and compliance experts make global shipping seamless.
An HS code is a 6-digit international classification number used to identify products for customs and trade purposes.
They determine the correct duties, ensure compliance with customs regulations, and help avoid delays or fines.
It includes a 2-digit chapter, 2-digit heading, and 2-digit subheading.
HS is the global base. HTS (U.S.) and TARIC (EU) are local extensions with more digits for country-specific tariffs.
The WCO updates the HS every 5 years. The most recent update was in 2022.
Yes. We validate, monitor, and update your HS codes to ensure seamless customs clearance and global fulfillment.
