HS Code Classification – How to Find the Correct HS Code

What is an HS code?

The Harmonized System (HS) is an international system for classifying goods traded across borders.

Products are classified according to factors such as what they are made from, their function, their characteristics and, in some cases, their intended use.

The international HS system forms the basis for customs tariff systems used around the world. The first six digits provide the internationally harmonized classification level, while individual customs territories may add further digits for more detailed classification.

Correct classification is therefore not simply a matter of finding a product name in a database. The characteristics of the actual product must be considered together with the applicable classification rules.

HS Code vs CN Code vs TARIC

These terms are closely related, but they describe different levels of the classification system.

For companies trading with the EU, identifying the HS heading may therefore only be the beginning. The correct EU classification may need to be determined at CN or TARIC level.

Why does the correct HS code matter?

Tariff classification can influence much more than the customs duty rate.

Depending on the product and trade flow, classification may affect:

• customs duty
• trade statistics
• tariff preferences
• quotas
• anti-dumping or countervailing duties
• import or export restrictions
• licensing or certificate requirements
• other trade-policy measures

An incorrect classification can therefore create incorrect customs declarations, unexpected costs, delays or compliance issues.

For businesses handling many products, classification quality also affects the consistency of master data used across purchasing, logistics and customs processes.

What information is needed to classify a product?

A product description such as “machine part”, “electronic device” or “plastic component” is often not sufficient.

Depending on the product, useful classification information can include:

• material or composition
• primary function
• how the product works
• technical specifications
• dimensions or capacity
• whether the product is complete or unfinished
• components included with the product
• intended use
• drawings, photographs or product sheets

The relevant information differs between products.

A textile product may require information about fibre composition and construction, while a machine component may require detailed information about its function and the machine in which it is used.

Good classification therefore begins with good product information.

Can I use the HS code provided by my supplier?

A supplier's HS code can be a useful starting point, but it should not automatically be treated as the final classification.

Read our step-by-step guide to verifying a supplier HS code →

There are several reasons.

The supplier may have classified the product incorrectly. The code may have been created for another customs territory. The supplier may only provide a six-digit HS code while an EU importer requires a more detailed CN or TARIC classification.

Product descriptions can also be incomplete.

The important question is not only “What HS code did the supplier provide?” but “Why is this the correct classification for this product?”

The classification should be supportable based on the characteristics of the goods and the applicable classification rules.

Common HS classification mistakes

Relying only on the product name

Commercial product names do not always correspond directly to customs terminology.

Using the supplier's code without verification

A supplier code can be valuable information, but it should be checked before being adopted.

Using an old classification without reviewing the product

Products and technical specifications can change. Nomenclatures can also be updated.

Ignoring material or composition

For many products, the material can be decisive for classification.

Ignoring the product's principal function

Machines and multifunctional products may require analysis of what the product actually does.

Stopping at the six-digit HS level

For EU customs purposes, further classification may be required under the Combined Nomenclature and TARIC.

How is an HS code determined?

Tariff classification follows a structured legal framework. For a broader company-level view, see our practical guide to customs classification.

1. understanding the product
2. identifying potentially relevant sections and chapters
3. reviewing heading and subheading wording
4. applying the General Rules for Interpretation
5. reviewing relevant section and chapter notes
6. considering explanatory material and classification decisions where relevant
7. determining the appropriate classification for the customs territory concerned

For simple products, the answer may be straightforward.

For complex machinery, sets, composite goods, chemicals, food products or multifunctional products, the analysis can require considerably more information and expertise.

AI-assisted HS code classification

AI can make the first stage of classification significantly faster.

IGLA Customs uses AI-assisted analysis to help evaluate product information and identify possible HS/CN classifications.

The objective is not simply to generate a number.

A useful classification process should help identify what information matters, highlight potential classification alternatives and provide a basis for further review.

This is particularly useful when companies need to analyse new products or large product ranges.

For cases requiring deeper analysis, IGLA Customs can combine the technology with support from a customs specialist.

When should a customs specialist review the classification?

Not every product requires extensive manual investigation.

However, specialist review can be valuable when:

• several classifications appear possible
• the product has several functions
• the composition is complex
• significant customs duty is involved
• anti-dumping or other trade measures may apply
• classification affects permits or restrictions
• large import volumes are involved
• the classification will be reused for a long period
• the company needs stronger documentation supporting its decision

For classifications where legal certainty is particularly important, businesses trading in the EU can also consider applying for Binding Tariff Information (BTI) from an EU customs authority.