The Harmonized System (HS)
The Harmonized System for Designating and Coding Goods (HS) is the international foundation for all customs tariffs worldwide. It is used by over 200 countries and covers approximately 98% of world trade.
History and Administration
The HS was introduced in 1988 by the World Customs Organization (WCO) and replaced earlier classification systems. It is revised every five years to keep pace with technological and economic developments.
The WCO in Brussels is responsible for maintaining and updating the system.
Structure of the HS
The HS is hierarchically structured:
- 21 Sections (Roman numerals)
- 97 Chapters (2-digit)
- Approx. 1,200 Headings (4-digit)
- Approx. 5,000 Subheadings (6-digit)
💡 The first 6 digits are internationally identical. Only from digit 7 do national tariffs differ.
General Rules of Interpretation (GRI)
Classification of goods follows six General Rules of Interpretation (GRI). The most important rule: The wording of the headings and related notes is decisive.
- GRI 1: Wording of headings and notes
- GRI 2: Incomplete/unfinished goods, mixtures
- GRI 3: When multiple headings are possible
- GRI 4: Most similar goods (analogy)
- GRI 5: Containers and packaging
- GRI 6: Subheadings
HS vs. CN vs. TARIC
In the EU, there are three levels of goods classification:
- HS (6-digit): International basis, uniform worldwide
- CN (8-digit): EU-specific extension for duties and statistics
- TARIC (10-digit): Additional measures like quotas, preferences, anti-dumping