GLOSSARY
HS Code Classification
The act of assigning the correct Harmonized System code to a product. Determines duty rate, FTA eligibility, export-control treatment, and statistical reporting.
HS code classification is the day-to-day act of selecting the right Harmonized System subheading for a given product, then extending it to the national tariff schedule (HTS in the US, CN in the EU). The General Rules of Interpretation (GRI 1–6) govern the legal hierarchy; section and chapter notes are binding; explanatory notes from the WCO are persuasive.
Why it matters
A wrong digit can switch a duty rate, trigger antidumping, lose an FTA preference, or pull a dual-use control into scope. Misclassification is also the #1 reason customs holds appear at clearance — and the most common AI-trade automation use case for exactly that reason.
Related terms
- Harmonized System
- HTS / CN
- Advance Ruling
- AEO