HS Codes: The 6-Digit Numbers That Determine Your Tariffs

A wrong HS code can mean fines up to 4× the duty owed, shipment holds, and customs delays. Here's how classification works.

What is the Harmonized System?

The Harmonized System (HS) is an international nomenclature developed by the World Customs Organization (WCO). Over 200 countries use it to classify traded products.

  • Created in 1988, updated every 5 years (current: 2022 revision)
  • Contains over 5,000 commodity groups
  • Organized into 21 sections and 97 chapters
  • First 6 digits are standardized globally
How HS Codes Are Structured
85

Chapter (2 digits)

Chapter 85 = Electrical machinery and equipment

8518

Heading (4 digits)

8518 = Audio equipment (speakers, microphones)

8518.30

Subheading (6 digits)

8518.30 = Headphones and earphones

Countries then add 2-4 more digits for national tariff schedules (e.g., US uses 10 digits)

Why Classification Errors Are Expensive

12-15%

of global shipments contain HS code errors according to WCO studies

Up to 4×

the duty owed in penalties for intentional or negligent misclassification in most jurisdictions

$8K-$25K

average cost of a customs audit triggered by misclassification, including legal and consultant fees

How TradeRyt Classifies Your Products

1
You Describe

Describe your product in plain language. Include material, function, and key features.

2
AI Applies GRI

Our AI applies the General Rules of Interpretation—the legal framework customs officers use.

3
You Get Results

Receive your HS code, confidence score, duty rates, and risk flags in under 30 seconds.

Trade Agreements Can Reduce Your Duties to 0%

Free trade agreements like USMCA, CPTPP, and CETA can eliminate tariffs entirely—but only if you classify correctly and meet rules of origin. TradeRyt checks all major agreements automatically and flags opportunities you might miss.

Ready to classify your products?

Free plan includes 3 HS Code classifications per month. No credit card required.