SHIPMENT PREPARATION & ONLINE AWB GENERATION

The Harmonized System (HS) code is a categorization system created, developed, and maintained by the World Customs Organization (WCO). Every commodity is tagged to a HS code, and the code assigned to it is internationally recognized in almost every country and is commonly used in customs to clear shipments. There are a total of 21 sections covering 97 chapters and each HS code comprises of six digits. The first two digits identify the section of which the HS code falls under followed by the next four digits comprising the chapter heading and sub-heading.

Singapore adopts the ASEAN Harmonized Tariff Nomenclature (AHTN) – where the first six digits still take reference from the international HS codes, but there is an additional two digits at the end that further breaks down the sub-headings. Here’s a guide on how you can get your HS code for your product.

You can visit (Singapore Customs TradeNet) and search for any of your commodity.

DHL will refer to the invoice provided by the shipper for HS Code classification. If there is no classification done, DHL will use the STCCED 2022 to classify the goods listed in the invoice to the best of our knowledge.

The HS contributes to the harmonization of Customs and trade procedures, and the trade data interchange in connection with such procedures, thus reducing the costs related to international trade.

It is also extensively used by governments, international organizations and the private sector for many other purposes such as internal taxes, trade policies, monitoring of controlled goods, rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation of national accounts, and economic research and analysis. The HS is thus a universal economic language and code for goods, and an indispensable tool for international trade.

Each HS code comprises of six digits. The first two digits identify the section of which the HS code falls under. There are a total of 21 sections, each chapter provides a description to generalize the category. The next 4 digits comprise of the heading and sub-heading within the chapter.

ASEAN countries follow the ASEAN Harmonized Tariff Nomenclature (AHTN) – where the first six digits still take reference from the international HS codes, but there is an additional two digits at the end that further breaks down the sub-headings. Commodities shipped within ASEAN normally use the eight digit AHTN classification.

You can visit (Singapore Customs TradeNet) and search for any of your commodity.

The Harmonized System (HS) is used by more than 200 countries and economies as a basis for their Customs tariffs and for the collection of international trade statistics. It is also used for many other purposes, including for the monitoring of controlled goods, as a basis of rules of origin and for trade negotiations, and it is a vital element of core Customs controls and procedures.

This publication contains the list of countries, territories or customs or economic unions applying the HS.

Incorrectly classifying a product can lead to overpayment/underpayment of duties, non-compliance penalties, shipment delays, failure to utilize free trade agreements, seizure of the products, or even a denial of import/export privileges.

When in doubt it is best to seek expert advice and let our Certified International Specialist classify your products. Read more about our customs services.

You can find the HS Code for your product with the Tariff Classification tool from Singapore Customs TradeNet or seek expert advice and let our Certified International Specialist classify your products for export.

Similarly, to move goods in and out of the US, you can use the US Census Bureau’s Schedule B search tool or the US International Trade Commission’s HTS search tool. For the UK, you can use the Trade Tariff tool, provided you know the type of your product, the material used to make it, and its production method.

Over 98 % of the merchandise in international trade is classified in terms of the HS. However, countries’ HS code can go beyond the WCO-prescribed six digits. This is because countries are allowed to add more digits to the original six-digit code for further classification. These additional digits typically vary from country to country to categorize and define commodities at more detailed level without modifying or changing first six digits.

For example, Singapore adopts the eight-digit ASEAN Harmonized Tariff Nomenclature (AHTN). In United States, 10-digit codes are used where the first six digits are the WCO-provided HS code. The US code is called a Schedule B number for export goods and a Harmonised Tariff Schedule (HTS) code for import goods. Similarly, in India, goods for export and import have an eight-digit code called an Indian Tariff Code (ITC). This system has two schedules – Schedule I for imports and Schedule II for exports.

Tariff classifications can be open to interpretation, which can result in a shipment being misclassified. Regardless of the reason, misclassified shipments can have multiple adverse consequences including:

• Overpayment/Underpayment of duties
• Failure to utilize free trade agreements
• Lead fines, liquidation and other penalties
• Unexpected customs clearance delays
• Seizure of the products
• Denial of import/export privileges

HS codes are used to classify and define goods traded internationally to determine rate of duty, eligibility for exemptions, qualification for approved manufacturer/assembler tariff provisions and calculation of any other additional taxes (e.g. excise).

HS Code declaration is based on the commodity that is being shipped. DHL is required to ensure declaration of HS Code is referred to the invoice provided. However, if there is no HS Code indicated in the invoice, DHL Express will classify the goods to be best of their knowledge. If there is an error, it may cause a short-fall or over-payment of duties to Customs resulting in penalties and unnecessary work.

Any amendment to the permit after a shipment has been cleared may be approved by Customs on a case by case basis.

Importers/exporters can seek advice from their Customs agency to determine the proper classification of their goods.

You can visit (Singapore Customs TradeNet) and search for any of your commodity.

Customs classification is the numbered category in a country’s customs tariff schedule to which goods being imported or exported are determined to belong for the purpose of

• Imposing duties and taxes
• Recording into the country’s international trade statistics

Most countries classify goods in accordance with the harmonized commodity description and coding system, popularly known as harmonized system.

If a specific item has a customs ruling on its HS Code classification, the clearance of the shipment will always refer to the customs ruling. The customs ruling will provide ease of clearance with customs officers. No customs officer can overrule the customs ruling issued by Customs HQ.