HS Code Classification: How to Classify Products for International Trade

HS Codes (Harmonized System codes) are the backbone of international trade. Every product that crosses a border must be classified with an HS Code, which determines the duty rate applied by customs. Getting it wrong can mean overpaying duties or facing penalties.

What is an HS Code?

The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs authorities in over 200 countries. The first 6 digits are internationally standardized; countries add additional digits for more specificity.

Structure of an HS Code

• Chapter (2 digits): Broad category (e.g., 61 = Knitted apparel)
• Heading (4 digits): More specific group (e.g., 6109 = T-shirts)
• Subheading (6 digits): Product type (e.g., 6109.10 = Cotton T-shirts)
• National lines (8-10 digits): Country-specific classification

AI-Powered Classification with POTAL

Manually classifying products is time-consuming and error-prone. POTAL uses AI to automatically classify your products into the correct HS Code based on the product name, description, and category. Our system covers 50+ product categories and continuously improves accuracy.

Best Practices for Sellers

• Always classify products before listing them for international sale
• Use specific product descriptions to get more accurate classifications
• Check if your products qualify for preferential rates under Free Trade Agreements
• Consider using POTAL's batch API to classify your entire catalog at once