HS code (Harmonized System code)
An HS code is a six-digit product classification number maintained by the World Customs Organization under the Harmonized System. Every country uses the same first six digits to identify what the product is. Countries extend it for their own duty schedules: the United States uses 10 digits (HTS), India uses 8 digits (ITC-HS), and the EU uses 8 digits (Combined Nomenclature).
What an HS code does
The HS code sits on the commercial invoice, the proforma invoice and the customs declaration. Customs officers read it to determine the duty rate. Buyers and freight forwarders use it to calculate landed cost. DDP sellers need it to quote the delivered price with duty paid.
The World Customs Organization groups the six-digit codes into chapters by the first two digits. Chapter 63 covers made-up textile articles such as bed linen (6302) and curtains (6303); Chapter 94 covers furniture and lamps. Headings and subheadings narrow it from there: 940350 is wooden bedroom furniture and 940360 is other wooden furniture.
Countries add digits beyond the first six to set their own duty rates and rules. The United States HTS extends to 10 digits. India’s ITC-HS system adds two digits (eight total); the EU Combined Nomenclature adds two digits (eight total). The first six digits match across all three systems; the extra digits reflect each country’s tariff schedule and trade agreements.
HS, HTS, ITC-HS and CN codes compared
HS code (Harmonized System code)
The six-digit international classification maintained by the World Customs Organization. Every member country reads the same six digits the same way, so a code agreed with a buyer in one market still describes the product in the next.
HTS code (Harmonized Tariff Schedule code)
The United States extends the six-digit HS code to 10 digits. The USITC publishes the full schedule. Duty rates vary by country of origin and trade agreements.
ITC-HS code (Indian Tariff Classification)
India extends the six-digit HS code to eight digits. The Central Board of Indirect Taxes and Customs (CBIC) and the Directorate General of Foreign Trade (DGFT) publish the schedule and applicable duty rates.
CN code (Combined Nomenclature)
The European Union extends the six-digit HS code to eight digits. The European Commission publishes the TARIC database with the full schedule, duty rates and any import restrictions by origin.
Why HS codes appear on quotes and invoices
The HS code determines the duty rate and any import restrictions. A buyer calculating landed cost needs the code to look up the duty percentage. A seller quoting DDP needs it to include duty in the price. The commercial invoice and the proforma invoice both carry the HS code so customs and the buyer know how the shipment will be classified.
Duty rates
Customs duty is usually a rate applied to the customs value, and the rate depends on the HS code and the country of origin. Trade agreements can lower it for qualifying origins.
Landed cost calculation
Buyers calculating landed cost add freight, insurance, duty, brokerage and delivery to the FOB price. The duty percentage comes from the HS code and the country of origin. A wrong code puts the error on every unit in the container, so the buyer finds it after the goods land.
DDP quoting
Under DDP Incoterms, the seller delivers the goods cleared for import and pays the duty. The DDP quote includes the duty, so the seller needs the HS code and the destination country’s rate before quoting. Buyers who want one delivered price ask for DDP.
Proforma and commercial invoices
The proforma invoice goes to the buyer before shipment for payment and import licensing. The commercial invoice travels with the goods for customs clearance. Both carry the HS code, so the buyer budgets the duty and customs clears the goods on the classification you both agreed.
How Poly9 AI handles HS codes in quotes
Poly9 AI quotes FOB from your cost recipes. A recipe holds the per-unit cost, the FOB port and the lead time. The quote shows those three facts together. HS codes belong on the commercial invoice, not the cost recipe or the FOB quote.
When a buyer asks for DDP and your catalog has no freight or duty rule to that destination, Poly9 AI returns price on request. Your team quotes the DDP price manually after looking up the HS code and the duty rate. The system never guesses a duty or a DDP price.
Exporters who quote DDP regularly keep the HS code for each product family and check it when quoting. A customs broker or a freight forwarder can verify the code and the duty rate before you quote. The importer of record declares the code at the destination, so agree on it with your buyer before you quote DDP.
Terms HS code connects to
Landed cost
The total cost to receive goods at the buyer’s warehouse. Landed cost includes product cost, freight, insurance, duty, brokerage and delivery. The duty percentage comes from the HS code and the origin country.
Incoterms
Trade terms (FOB, CIF, DDP) that define who pays freight, insurance and duty. Under DDP, the seller needs the HS code to calculate duty and include it in the quote.
Proforma invoice
The preliminary invoice issued before shipping. It states the HS code with the items so the buyer can apply for an import licence and budget the duty before paying.
Cost recipe
The pricing rules behind a custom product quote. The recipe holds FOB cost and port; the HS code appears on the invoice when the order ships.
Certified quote
A quote priced from your approved rules. A certified quote gives the buyer confidence in the FOB price, which is the starting point for their landed cost calculation using the HS code.
Where to check a code
- World Customs Organization: what is the Harmonized System The six-digit international nomenclature.
- USITC Harmonized Tariff Schedule US 10-digit lines and duty rates, including 9403.50 and 9401.61.
- European Commission: Combined Nomenclature EU 8-digit codes; duty rates by origin are in TARIC.
- CBIC customs tariff India import tariff and duty rates.
- DGFT ITC-HS schedules India import and export policy by ITC-HS code.
Questions about HS codes
What is the difference between an HS code and an HTS code?
Who assigns the HS code for a product?
What happens if the HS code on the invoice is wrong?
Does a configured product with variants need different HS codes?
Where can I look up the HS code and duty rate for my product?
How does Poly9 AI use HS codes?
Quote FOB from your cost recipes
Poly9 AI prices every configured variant from your cost recipes, shows the FOB port with lead time, and returns price on request when a rule is missing. Add your catalog or start from your industry sample.