Inventory glossary

What is HS code?

HS code (Harmonized System code) is a standard numeric code used worldwide to classify traded products for customs purposes.

If you import products or ship internationally, the HS code tells customs what you are bringing in and what duty rate applies. Getting it wrong can delay a shipment at the border or trigger the wrong duty charge, which messes up your landed cost and your timeline for restocking.

As a small store owner, you usually get the HS code from your supplier or a freight forwarder rather than looking it up yourself. Keep it on file for each product you import, since you will need it on commercial invoices and customs paperwork every time you reorder from overseas.

Example

A candle brand imports soy wax candles from a supplier in Vietnam. The supplier lists HS code 3406.00 on the commercial invoice for every shipment. Customs uses that code to apply the duty rate for candles rather than treating the shipment as a different product category with a higher rate.

Common mistakes

  • Using a generic or guessed code instead of the correct one for the specific material or product.
  • Assuming the HS code is the same in every country when the first six digits are standard but later digits vary by country.
  • Not updating the code when a product's materials or construction change.

HS code and SteadyShelf

SteadyShelf does not handle customs or landed cost, but it does track supplier lead times, so you can account for customs clearance delays when setting your order-by dates.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Customs clearance · Incoterms · Commercial invoice · Landed cost · Tariffs and duties

Full inventory glossary

FAQ

Do I need an HS code if I only sell domestically?

No. HS codes matter only when products cross international borders, either when you import from a supplier abroad or ship orders to customers in other countries.

Who decides the HS code for my product?

Your supplier or freight forwarder usually provides it based on the product's material and use. Customs authorities can challenge it if they think it is misclassified.

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