HS Codes & Classification

An HS (Harmonized System) code is a standardised numerical system identifying products for customs. Every international shipment needs one. Customs use it to determine duty rates, restrictions, and trade agreement eligibility. Codes are 6 digits globally, extended to 8-10 by individual countries. Wrong codes cause customs holds (5-14 days), incorrect duties, or seizure. Swap stores HS codes, country of origin, and manufacturer details automatically for streamlined clearance.

Yes. AI tools analyse product descriptions and specifications to suggest accurate HS codes, processing thousands of SKUs faster than manual classification. When combined with a platform like Swap that stores and applies codes automatically, AI classification dramatically reduces customs holds and errors.

Search your country's tariff schedule (e.g. US International Trade Commission HTS tool), consult a customs broker, or use AI classification tools like Zonos Classify. Be specific about materials, use, and manufacturing. Swap stores your classified codes so they're applied to every shipment automatically.

Incorrect HS codes cause customs holds (5-14 days), wrong duty charges, fines, or seizure. About 25% of e-commerce shipments are affected by code errors, accounting for 40% of customs delays. US Customs now rejects vague descriptions, 'men's cotton t-shirt' is required, not just 't-shirt'.

A duty rate schedule lists official duty rates by HS code. Key resources: US International Trade Commission (USITC), EU TARIC database, UK trade tariff on gov.uk. Rates change frequently, so automated tools like Swap's Tariff Calculator provide current rates without manual checking.

The first 6 digits are standardised globally. Countries add digits for specificity: US uses 10-digit HTS, EU uses 8-digit CN codes, GCC moved to 12 digits in 2025. This means the same product has different specific codes and duty rates by destination. Always use destination-specific codes.

Tariff engineering for ecommerce involves structuring products, materials, or supply chains to qualify for lower tariff classifications or free trade agreement preferences. For DTC brands, this might mean adjusting product construction to qualify under a different HS code, or sourcing components from free trade agreement partner countries. Swap supports accurate HS classification and can help identify classification opportunities through its compliance team.