News

In logistics, HS Codes (Harmonized System Codes) play a vital role in classifying goods, determining taxes and fees, and ensuring legal compliance for export and import processes. Every product, from phones to clothing, even industrial items, has its own unique HS Code, making it easier to identify and process during international trade transactions.

What Are HS Codes?

HS Codes are an international standard used for classifying goods in global trade. The system is organized into 21 sections, 96 chapters, and thousands of headings, each containing around 5,000 product groups. HS Codes help define the name, description, nature, composition, purpose, packaging, and various attributes of goods.

Structure of HS Codes

HS Codes have the following structure:

• Section: The system is divided into 21 sections, each with its own annotations.
• Chapter: Each section contains 97 chapters, with chapters 98 and 99 dedicated to specific countries. The first two digits indicate the chapter number.
• Heading: The next two digits specify the product group, helping classify the products into broader categories.
• Subheading: The following two digits indicate specific subcategories within the product group.
• Subheading Code: The final two digits are specific to each country, providing a further subdivision for product categorization.

Do HS Codes Differ Between Countries?

• International HS Codes: The first six digits are the same across countries.
• National Variations: Additional digits (7-10 digits) vary by country’s regulations.
• Vietnam: HS Codes in Vietnam consist of 8 digits.
• Other Countries: Some countries may use HS Codes with 10 or 12 digits.

Purpose and Value of HS Codes

• Purpose: HS Codes are used primarily by customs and logistics providers to:
  • Calculate taxes and fees for imported goods.
  • Ensure goods comply with safety, health, and import regulations.
• Global Value: HS Codes are globally recognized, ensuring consistency in the classification of goods across countries. This facilitates smoother international trade and minimizes errors.

How to Search for HS Codes

Accurate HS Code classification is crucial to ensure goods are properly categorized and comply with legal requirements. Here are two ways to search for HS Codes:

1. Search on the General Department of Customs Website:
   • Visit the “HS Code and Tariff Search” page of Vietnam’s General Department of Customs.
   • Enter product keywords to find the corresponding HS Code.
2. Search Through Appendix of Circular 31/2022/TT-BTC:
   • Search for HS Codes on Google using the format: “Product name HS code.”
   • Compare the search results with the Appendix in Circular 31/2022/TT-BTC to confirm the correct code.

Tips for Accurate HS Code Classification

To classify products correctly, it’s essential to understand the characteristics of the item. Key factors to consider include:

• Product name
• Purpose and material composition
• Technical specifications and unique attributes

Understanding and accurately searching for HS Codes is a critical step in the export-import process. HS Codes not only simplify the classification of goods but also help save time, reduce costs, and prevent legal issues in international trade transactions.