What is HS Code?
A HS code is an international coding system for the classification of products that will be exported and used by customs officials to document the commodities entering and exiting the country. Every imported or exported item is assigned a classification code (Harmonized Code) that corresponds to its product type. These numerical codes are used by countries worldwide for statistics-gathering purposes. They also determine which tariffs, if any, will be applied to the product. The HS codes are administered by the World Customs Organization (WCO) and are internationally accepted for use by customs authorities and companies to identify goods.

Why we need HS codes?
The correct HS code for your goods will be required for use in legal and commercial documents when undertaking trade. Some examples of use are in sales contracts, bills of lading, letters of credit, and certificates of origin. Some of these legal and commercial documents are needed when applying for trade finance. HS codes are also used by customs authorities to apply tariffs and taxes to goods and keep track of imports and exports.

Here are some practical uses of HS codes:
1. Customs clearance: When importing or exporting goods, HS codes are used on shipping documents, such as invoices and packing lists, to declare the contents of the shipment.
2. Tariff determination: HS codes are used to determine the applicable tariffs or customs duties for a particular product.
3. Trade statistics: HS codes are used to collect and analyze trade statistics at a national and international level. Governments, international organizations, and businesses use HS codes to track and analyze trade flows, measure trade performance, and identify market trends.
4. Compliance with regulations: HS codes are used to ensure compliance with regulations related to product safety, health, and environmental standards.
5. Supply chain management: HS codes are used in supply chain management to identify and track products as they move through the global supply chain.