HS Code (Tariff Code)
Quick answer
The international customs classification code for goods, determining duties and import/export restrictions.
Key takeaways
- Import/export customs declaration
- Landed-cost calculation
- Commercial documents (invoice, packing list)
What an HS code is
HS Code (Harmonized System) is the international goods classification system administered by the World Customs Organization. In the EU it extends to the CN code (8 digits) and TARIC (10 digits).
Why it matters to the board
The HS code determines customs duties, import VAT and any restrictions. Wrong classification means overpaid duties, penalties at inspection or held goods.
Where it is used
- Import/export customs declaration
- Landed-cost calculation
- Commercial documents (invoice, packing list)
How CRMconnect helps
CRMconnect keeps the tariff code on the product record and propagates it into import/export documents and landed-cost calculation, reducing misclassification and surprise duties.
Real-world example
An importer overpaid duties because a product was misclassified under an HS code with a higher tariff. Correcting the code on the item record in CRMconnect cut customs duties by 4%.
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Frequently asked
Is the HS code the same worldwide?+
The first 6 digits are global (HS). Extensions (CN, TARIC in the EU; HTS in the US) differ per country/customs union.
Who is responsible for classification?+
The importer/exporter is responsible for correct classification, even when using a customs broker. That's why the code must stay clean on the product record.
Where CRMconnect fits
Related terms
Incoterms
Standardised international rules (ICC) defining who pays for transport, risk and customs in a commercial transaction.
FinanceLanded Cost
The total real cost of a product up to the warehouse: purchase price + freight + duties + insurance + handling.
LogisticsBill of Lading (B/L)
The sea transport document proving receipt of goods, the transport contract and title to the goods.