Harmonized System
It is used by over 200 WCO member countries and economies as a basis for their Customs tariffs and for the collection of international trade statistics as well as many other purposes.
Generally, HS Sections and Chapters are arranged in order of a product's degree of manufacture or in terms of its technological complexity.
For example, within Section X (Pulp of wood or of other fibrous cellulosic material; Recovered (waste and scrap) paper or paperboard; Paper and paperboard and articles thereof), Chapter 47 provides for pulp of wood or of other fibrous cellulosic materials, whereas Chapter 49 covers printed books, newspapers, and other printed matter.
Parties are permitted to subdivide the HS Nomenclature beyond 6-digits and add their own Legal Notes according to their own tariff and statistical requirements.
All products can be classified in the HS by using the General Rules for the Interpretation of the Harmonized System ("GRI") that must be applied in strict order.
HS codes can be determined by a variety of factors including a product's composition, its form and its function.
If the CO detector does not capture and display gas measurements, then it is properly classified under subheading 8531.10 (Burglar or fire alarms and similar apparatus), under heading 85.31 (Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 85.12 or 85.30).
Any product for which there is no explicit description can be classified under a "residual" or "basket" heading or subheading, which provide for Other goods.
As of 2022, there were more than 200 countries or economies applying the Harmonized System worldwide,[2] HS codes are used by Customs authorities, statistical agencies, and other government regulatory bodies, to monitor and control the import and export of commodities through: Companies use HS codes to calculate the total landed cost of imported products and parts, and to identify selling and sourcing opportunities abroad.
Depending on the severity of the infraction, incorrect classification can result in the imposition of non-compliance penalties, border delays or seizures, or denial of import privileges.
There are multiple resources available to traders to assist in properly classifying their goods including the following.
Global National or Regional Traders may sometimes resort to using HS code determination guides and other references to classify their traded commodities.
