How to Find the Right HS Code for Your Product: A Complete Guide

If you are an exporter or importer, you need to know the HS code of your product. HS code stands for Harmonized System code, and it is a standardized system of classification for goods traded internationally. HS code helps customs authorities to identify the origin, tariff, and other regulations applicable to your product.

But how do you find the right HS code for your product? And what are the benefits of using it correctly? In this article, we will answer these questions and more. We will explain what HS code is, how it works, how to use it, and where to find it. We will also provide some tips and resources to help you avoid common mistakes and problems related to HS code.

What is HS Code?

HS code is a six-digit code that represents a specific product or category of products. It is based on the Harmonized Commodity Description and Coding System (HS), which is an international standard developed by the World Customs Organization (WCO).

The HS code consists of two parts: the first four digits indicate the heading, which is the broad category of the product, and the last two digits indicate the subheading, which is the specific subcategory of the product. For example, the HS code for coffee beans is 0901.11, where 0901 is the heading for coffee, tea, mate and spices, and 11 is the subheading for coffee beans, not roasted or decaffeinated.

The HS code is used by customs authorities around the world to classify products for various purposes, such as:

Determining the applicable tariff rates and preferential trade agreements
Collecting trade statistics and data
Implementing trade policies and regulations
Enforcing health, safety, and environmental standards
Preventing fraud and smuggling
Facilitating trade facilitation and simplification

How Does HS Code Work?

The HS code is a universal language that allows different countries to communicate and exchange information about their products. However, different countries may have different requirements and regulations for their products, so they may add additional digits or letters to the HS code to create their own national or regional codes.

For example, the European Union (EU) uses an eight-digit code called the Combined Nomenclature (CN), which adds two more digits to the HS code to create more specific categories. The United States (US) uses a 10-digit code called the Schedule B number, which adds four more digits to the HS code to create more detailed classifications.

Therefore, when you are exporting or importing a product, you need to know not only the HS code of your product, but also the national or regional codes of your destination or origin country. You also need to check if there are any special rules or restrictions that apply to your product in those countries.

How to Use HS Code?

Using the correct HS code for your product is essential for ensuring a smooth and compliant trade process. Here are some steps that you can follow to use HS code effectively:

Identify your product and its main characteristics, such as material, function, use, shape, size, etc.
Search for your product in the official HS database or online tools that provide access to it. You can use keywords, descriptions, or images to find your product. Alternatively, you can consult with a customs broker or an expert who can help you with this process.
Compare and verify your product with the definitions and explanatory notes provided in the HS database or online tools. Make sure that your product matches the criteria and conditions of the chosen HS code.
Check if there are any additional digits or letters that you need to add to the HS code according to your destination or origin country’s national or regional codes. You can find these codes in their official websites or online tools.
Check if there are any special rules or restrictions that apply to your product in your destination or origin country, such as tariffs, quotas, licenses, certificates, etc. You can find this information in their official websites or online tools as well.
Include the correct HS code in your commercial invoice and other export or import documents that require it. Make sure that you use consistent and accurate information throughout your documents.

Where to Find HS Code?

There are many sources and tools that you can use to find the HS code of your product. Some of them are:

The official website of the WCO: https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2017-edition/hs-nomenclature-2017-edition.aspx
The official website of your destination or origin country’s customs authority: https://www.customs.gov.my/en/Pages/default.aspx
Online tools that provide access to the HS database and national or regional codes: https://www.tariffnumber.com/, https://www.hscode.org/, https://www.exportgenius.in/hs-code, etc.
Online tools that provide guidance and assistance for finding the HS code of your product: https://www.trademap.org/, https://www.dutycalculator.com/, https://www.simplyduty.com/, etc.
Customs brokers or experts who can help you with the HS code classification and verification process.

Tips and Resources to Avoid Common Mistakes and Problems Related to HS Code

Using the wrong HS code for your product can lead to serious consequences, such as:

Delayed or rejected shipments
Increased costs and fees
Fines and penalties
Legal actions and disputes
Loss of reputation and credibility

Therefore, it is important to avoid common mistakes and problems related to HS code, such as:

Using outdated or obsolete HS codes
Using generic or vague HS codes
Using incorrect or incomplete national or regional codes
Using inconsistent or inaccurate information in your documents
Not checking or updating your HS codes regularly

To avoid these mistakes and problems, you can use some tips and resources, such as:

Keeping yourself updated with the latest changes and revisions of the HS system and national or regional codes
Using reliable and reputable sources and tools to find and verify your HS codes
Seeking professional advice or assistance from customs brokers or experts if you are unsure or have doubts about your HS codes
Reviewing and auditing your HS codes periodically to ensure their accuracy and compliance
Educating yourself and your staff about the importance and benefits of using the correct HS codes

HS code JKDM is a system of codes used by the Malaysian Customs Department to classify goods for tariff purposes. It is based on the Harmonized System (HS) of the World Customs Organization (WCO), which is an international standard for naming and categorizing products. In this blog post, we will look at three statistical long paragraphs that show the increase or decrease of global demand in the HS code JKDM industry.

Global demand for palm oil and its products

One of the main products under the HS code JKDM category is palm oil and its derivatives, such as olein, stearin, fatty acids, glycerine, and biodiesel. According to the Malaysian Palm Oil Board (MPOB), Malaysia exported 17.4 million tonnes of palm oil and palm oil products in 2020, valued at RM 72.8 billion. This was an increase of 18.6% in volume and 37.5% in value compared to 2019, despite the challenges posed by the COVID-19 pandemic. The main export destinations were China, India, Pakistan, the European Union, and Turkey. The global demand for palm oil and its products was driven by factors such as population growth, rising incomes, food security, biofuel policies, and environmental concerns .

Global demand for rubber and its products

Another important product under the HS code JKDM category is rubber and its products, such as latex, gloves, tyres, hoses, belts, and mats. According to the Malaysian Rubber Board (MRB), Malaysia exported 1.2 million tonnes of rubber and rubber products in 2020, valued at RM 32.3 billion. This was a decrease of 4.8% in volume but an increase of 28.6% in value compared to 2019. The main export destinations were China, the United States, Germany, Japan, and Brazil. The global demand for rubber and its products was affected by factors such as the COVID-19 pandemic, which boosted the demand for medical gloves but reduced the demand for automotive tyres, as well as the fluctuations in rubber prices and exchange rates .

Global demand for electrical and electronic products

A third product under the HS code JKDM category is electrical and electronic (E&E) products, such as semiconductors, integrated circuits, printed circuit boards, solar cells, batteries, and LED lamps. According to the Malaysian Investment Development Authority (MIDA), Malaysia exported RM 443.5 billion worth of E&E products in 2020, accounting for 36.7% of Malaysia’s total exports. This was an increase of 10.8% compared to 2019. The main export destinations were China, Singapore, Hong Kong, the United States, and Japan. The global demand for E&E products was influenced by factors such as the digital transformation, the Internet of Things (IoT), artificial intelligence (AI), cloud computing, 5G technology, and renewable energy .

References:

http://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx

http://www.wcoomd.org/en/about-us/wco-members/membership.aspx

http://www.mpob.gov.my/index.php/en/statistics/exports/exports-by-destination
https://www.lgm.gov.my/wp-content/uploads/2021/03/Annual-Report-2020.pdf
https://www.mida.gov.my/home/electrical-and-electronics/posts/

https://www.wcoomd.org/

https://www.customs.gov.my/en/Pages/default.aspx

https://www.tariffnumber.com/

https://www.hscode.org/

https://www.exportgenius.in/hs-code