An international trade term you have to know: HS Code

Since, Salesupp.NET has became online, I contact with many company representatives, which are directly involved into international trade. On Salesupp.NET, sign up page, we ask companies to choose their products’ chapter numbers in order to classify them according to a known term on international trade (Well, at least we have thought that they should know if they export or importJ). But, it made me surprise that I have taken many questions about chapter numbers, even though it is really important to know and is required in many cases, such as online market research, transportation documents, tariffs etc. So, I have decided to explain what HS code and chapter number are in this post.

Harmonized system or HS has been developed by World Customs Organization (WOC) as 6 digits to classify commodities, which are object to international trade. It has 21 sections and 97 chapter numbers, which represent 5000 commodity classes. Chapter number is the first two digits of HS code. Chapter number 77 has been remained empty for future needs. Chapter numbers 98 and 99 are for use of Custom Administrations. So, HS code starts with chapter number. After chapter number, HS code continues with heading, which means the first four digits. The last step of HS code is sub-heading which contains all six digits of HS code. Every step is designed to specify commodities with more detail. To illustrate the issue, we better go with an example.

Let’s assume our commodity is cherry tomato (I know very specific exampleJ). Chapter number of our commodity is 07, “Edible vegetables and certain roots and tubers” (chapter number is the number you will choose on sign up page of Salesupp.NET). We go more specific and our heading number is 0702, “tomatoes, fresh or chilled”. And finally we end up with sub-heading, which is 0702.10, “Cherry”. 

HS code is a must-known term in international trade and you especially need chapter number for Salesupp.NET J Don’t forget, knowing specific terms are compulsory in networking process, which we always insist on as you remember from our previous posts. After all, international trade is profit of networking. You remember our motto, don’t you? J

For whole list of HS codes, you can check this page: 

http://www.foreign-trade.com/reference/hscode.htm