HS Code Lookup Made Easy: Save Time and Money on International Shipments
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Freya Jane
- Director of Customer's Success
Global trade offers multiple exciting opportunities for businesses to expand their customer base and reach. Imagine a scenario where you have landed a huge international deal, and your goods are ready to be shipped, but then you find yourself struggling with shipping rules. A question arises here: How do you navigate the world of complex customs and border rules without any delays or god’s seizures? The answer lies in the simple yet powerful tool: the HS code lookup tool.
Using the wrong HS codes can account for significant customs delays, impacting your customer satisfaction and overall outcome.
The costly consequences of wrong HS codes
“22% delays at customs can be caused by harmonised system (HS) code error”.
This figure emphasises that incorrect HS codes for imports and exports can contribute greatly to the bottlenecks faced by traders during global trade.
Let’s eliminate this hassle with a harmonised code lookup tool and make your international trade more smooth. Keep reading for in-depth information.
Understanding HS code
An HS code (harmonised system) is a globally recognised nomenclature developed by the World Customs Organisation. This standardised system of numbers and names for classifying importing and exporting goods allows all trading countries to be on the same page.
Customs officials use this code to classify goods and determine the correct duties and taxes to be paid for traded goods. Each HS code comprises up to 10 digits and is used for all UK import and export declarations. Moreover, it is also required for international trading documents such as
- Packing lists
- Invoices
- Certificates of origin
- Letters of credit
Want to learn more about HS codes?
Read this: HS Code: A Comprehensive Guide for Importers and Exporters
HS code structure
The HMRC HS codes system employs a hierarchical structure to categorise globally traded goods. This approach helps with more efficient customs clearance and guarantees that trade policies are applied consistently.
Let’s understand the structure of commodity code:
Chapter (2 digits)
There are a total of 99 chapters that make up a harmonised system of tariff and trade, and each chapter represents a wide category of goods. These 2 digits provide an overview of the type of the products.
Examples:
Chapter 84: Represents Mechanical appliances, machinery, boilers, nuclear reactors, etc.
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Chapter 2: Meat and edible meat offal
Heading (4 digits)
Each chapter is further subdivided into headings, which denote more specific product categories within the larger chapter categorisation. Headings are represented by four digits. It provides a more detailed summary of the goods that are included in the package.
Example:
An example of this can be seen in Heading 02.01 of Chapter 2 (Meat and Edible Meat Offal), which states that “Meat of Bovine Animals, Bone-In.“
Sub-heading (6 digits)
Headings are further broken into subheadings, which provide the highest detailed level of product classification under the HS code system. Subheadings are comprised of six digits. The subheadings provide the most accurate identification of the particular items being sold.
Example:
In continuation of the previous example, the subheading 0201.10 is particularly focused on “Carcasses and half-carcasses of bovine animals, bone-in.“
Simplify HS code classification with 99% accuracy with iCustoms! Start Now!
Why do you need an HS code?
When importing goods into the UK, you will be charged duties at customs, which are calculated based on the value of your products. HMRC requires you to submit the correct commodity code for your goods in order to classify the products and give an accurate duty rating. Thus, it is crucial to find the right HS customs code for your goods. If you declare your products incorrectly, they may be held by customs, and you will face significantly higher costs than if you declared them correctly.
Importance of correct HS code in international trade
The importance of commodity code classification, can not be denied in international trade, it plays the following roles:
- Accurate VAT and duty calculation: The HS code is used to determine the applicable Value-Added Tax (VAT) and duty rates for your goods. This ensures that you pay the appropriate amount on your taxes.
- Navigate licencing requirements: Certain products require particular import/export licences. The HS code makes it easier to identify such requirements for smooth clearance.
- Assess duty suspension: It is possible that certain goods may be eligible for duty suspension or restriction under the Free Trade Agreement (FTA). Locating the right HS code makes it possible to investigate such prospective advantages.
- Avoiding inaccurate interest payments: A precise classification guarantees speedy clearance through customs and prevents the imposition of unnecessary interest charges.
- Saving time: Using accurate HS codes helps to speed up the process of clearing customs, which in turn helps to avoid delays and ensures that your goods reach their destination in a timely manner.
- Mitigate risks of seizure: Knowing that HS codes are erroneous can reduce the likelihood of a product being seized by customs authorities. Proper classification reduces these risks to a minimum.
HS code lookup: Finding the right HS code for your goods
Know your goods
Knowing your goods inside and out is the first step in importing or exporting them. Take into account the following things:
Product’s characteristics
Key components that make up the product
The functionality of the goods
Packaging specifications of the goods
Any unique technical characteristics
How it is produced
Make advantage of iCustoms' HS Code Lookup Tool:
This process is made easier using iCustoms’ user-friendly HS code lookup tool. This is how to use it:
- Go to the HS code lookup tool named iClassification, on the iCustoms website.
- Add pertinent product information, such as the material, functionality, and any special characteristics.
- Based on the information you provide, the tool will return a list of possible HS codes.
HS code Lookup Tool
UK Integrated Online Tariff
Best match Products Name or products description , you can select any of them to check and calculate duty rate, VAT rate and total landed cost.
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This tariff information is for the UK only
Staying updated on HS codes with iCustoms
HS codes for customs undergo revisions and updation periodically depending on the changes in the landscape of global trade. Thus, it is imperative to stay updated to ensure the accurate classification of your products to avoid unnecessary delays and costs.
iCustoms AI-driven tool (HS code tariff lookup) removes this hassle as it is automatically updated, providing the accurate codes for your goods, saving you at customs.
iCustoms take the hassle out of customs declarations with our free HS code finder tool!
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Streamline Product Classification
Uncover iClassification for precise Global Trade, Delivering Time-Saving Accuracy.