Harmonized System (HS) Codes Explained: HS vs HTS vs Schedule B

Updated: 2026 · Maintained By: SICCODE.com Classification Research · Standard Body: World Customs Organization (WCO) · Governance: Authority & Trust Hub

What is the Harmonized System (HS)? The Harmonized System (HS) is the world’s core goods classification standard used for customs tariffs and international merchandise trade statistics. It organizes traded products into a shared structure so that countries can classify goods consistently at the border and report comparable trade data.

What HS is (and isn’t)

HS is the global backbone for classifying physical goods in international trade. It is not a business-industry code (like NAICS) and it is not a product/asset framework that includes services (like CPC).

HS answers

  • “What is this good?” (customs identity)
  • “What duty/tariff line applies?”
  • “How do we report merchandise trade?”

HS does not answer

  • “What industry is the company in?” (use NAICS / NACE / ISIC)
  • “What service was sold cross-border?” (use EBOPS / BPM6)
  • “How should we group products incl. services?” (use CPC / NAPCS)

HS code anatomy (visual hierarchy)

HS is hierarchical. The global standard is the first 6 digits (chapter + heading + subheading). Many countries then extend HS to 8–12 digits for tariff or statistical detail.

Chapter (2 digits)
74

Copper and articles thereof

Heading (4 digits)
7408

Copper wire

Subheading (6 digits)
740821

Wire of copper-zinc base alloys (brass)

National extensions
8–12 digits

Country-specific tariff/statistical detail (varies by country)

U.S. shortcut (high-impact distinction):
HS (6 digits): global WCO standard for goods
HTS (10 digits): U.S. import classification (USITC) built on HS headings/subheadings
Schedule B (10 digits): U.S. export classification (Census) built on HS headings/subheadings

What HS is used for

HS is the shared language that powers tariffs and enables comparable trade reporting across countries.

  • Customs tariffs & duties: determining the applicable duty rate and import requirements.
  • Merchandise trade statistics: reporting what goods are traded and in what values/quantities.
  • Rules of origin & trade policy: supporting FTAs and origin determinations where applicable.
  • Controls & enforcement: monitoring restricted/controlled goods and compliance programs.
  • Analytics: market sizing, competitor import/export patterns, and supply chain research.

Global trade data tip: If you’re researching import/export patterns by product, most international merchandise trade datasets are built around HS-based reporting and related groupings.

How to classify a product correctly (practical workflow)

Correct HS classification is a product-identity decision. The fastest way to reduce misclassification is to treat it like a checklist.

Step 1: Define the product

  • Material composition (primary material, percentages)
  • Function / principal use
  • Manufacturing stage (raw, semi-finished, finished)
  • Key specs (dimensions, power rating, packaging, etc.)

Step 2: Navigate the hierarchy

  • Select the best-fit chapter
  • Narrow to the correct heading
  • Choose the precise 6-digit subheading
  • Apply country extensions (HTS / Schedule B) when needed

Common failure mode: choosing a code by product name only. HS classification often depends on material, form, and use—so “close sounding” codes can be wrong.

Revision cycle (why HS changes over time)

The HS is a living standard maintained through a formal international convention and updated periodically to reflect real trade patterns and technology change. The current HS edition entered into effect in 2022, and revision work continues on the next cycle.

  • Why revisions happen: new products, environmental priorities, evolving supply chains, and emerging technologies.
  • What this means for analysts: record the HS vintage (year/edition) when doing multi-year trade trend work.
  • What this means for importers/exporters: re-check classification when a new edition is adopted or when national extensions change.

If you’re working across product, industry, and international reporting, these pages help connect the standards:

Product & services classifications

Industry classifications

FAQ

  • Is HS the same as HTS?
    No. HS is the global 6-digit standard. The HTS is the U.S. import system that extends HS with national detail for tariff administration.
  • Is HS the same as Schedule B?
    No. Schedule B is used for U.S. export reporting and is built on HS headings/subheadings with U.S. extensions for statistical detail.
  • How many digits is an HS code?
    The internationally standardized HS level is 6 digits. Many countries add additional digits for national tariff and statistical reporting.
  • Why do I see different codes for the “same product” across countries?
    The first 6 digits are typically the shared baseline, but national extensions can differ. Also, classification can change if product specs differ (materials, use, form).
  • What should I record for analytics: HS 6-digit or the national code?
    For cross-country comparability, use HS 6-digit. For tariff, compliance, and country-specific filings, use the relevant national extension.

Primary sources