Exporting Fact Sheet - Harmonized Commodity Coding System (HS)

Summary

INTRODUCTION
The HS is intended to serve as a universally accepted classification system for goods so countries can administer customs programs and collect trade data on exports and imports. It was designed to replace the local systems used by countries allowing them to have a common classification system by which to track trade and apply tariffs.

The basic system uses a 6-digit number to identify basic commodities. Each country is allowed to add additional digits for statistical purposes. In Canada an additional 2-digits are used for exports and an additional four digits for imports. The U.S. uses a 10-digit system for both exports and imports.

It was developed under the auspices of the Customs Cooperation Council (CCC) now known as the World Customs Organization (WCO) (http://www.wcoomd.org ).   The WCO, located in Brussels is an international organization consisting of representatives of about 139 countries or territories.

HOW THE HS WORKS
The Harmonized System is a commodity classification system in which articles are grouped largely according to the nature of the materials of which they are made, as has been traditional in customs nomenclatures. The HS contains approximately 5000 headings and subheadings covering all articles in trade. These provisions are organized in 96 chapters arranged in 21 sections which, along with the interpretive rules and legal notes to the chapters and sections, form the legal text of the Harmonized System.

The basic six digit code that makes up the HS is made of three parts. The first two digits identify the chapter the goods are classified in. For example:
07
Edible Vegetables and Certain Roots and Tubers

The next two digits identify groupings within that chapter:
07.06
Carrots, Turnips, Salad Beetroot, Salsify, Celeriac, Radishes and Similar Edible Roots, Fresh or Chilled.

The next two digits are even more specific:
07.06.10
Carrots and Turnips

This is the last point at which different countries classification codes are identical. After this point countries can add more digits to make the HS classification numbers even more specific. Canada uses another two for exports and another four for imports. The United States uses four additional numbers for both imports and exports. In Canada for exports the next step in the above progression is:
07.06.10.10
Carrots, fresh or chilled

Most countries of the world track imports far more thoroughly than they do exports. Canada uses five different 10 digit HS codes for the import of fresh or chilled carrots:
07.06.10.11.00
Baby carrots, fresh or chilled, period specified by minister, in packages less than or equal to 2.27 kg
07.06.10.12.00
Baby carrots, fresh or chilled, period specified by minister, in packages greater than 2.27 kg
07.06.10.21.00
Carrots, except baby. fresh or chilled, period specified by minister, in packages less than or equal to 2.27 kg
07.06.10.22.00
Carrots, except baby. fresh or chilled, period specified by minister, in packages greater than 2.27 kg
07.06.10.30.00
Carrots, fresh or chilled, not elsewhere specified (nes)

While the United States does use 10 digit codes for both exports and imports this doesn't necessarily mean that they track exports in any more detail than does Canada. This is what their HS code for fresh or chilled carrots looks like:
07.06.10.30.00
Carrots, fresh or chilled

Here's their import HS codes:
07.06.10.05.00
Carrots, reduced in size, fresh or chilled
07.06.10.10.00
Carrots, under 10 cm in length, fresh or chilled
07.06.10.05.00
Carrots, nor elsewhere specified or indicated (nesoi), fresh or chilled

See how different the codes can be even though they use the same first six digits? And this is for a relatively simple good like fresh or chilled carrots. It gets much worse with more complicated goods like apparel and machinery. This makes comparison of different countries trade problematic but still better than it used to be with the plethora of commodity codes that existed before 1988 when the HS system came into widespread use.

SEARCHING THE HARMONIZED SYSTEM

• Statistics Canada allows you to search by HS code or commodity on their website - Search for Commodities (http://www.statcan.ca/trade/scripts/trade_search.cgi)  
• ExportSource provides links to tariff information for various countries around the world - HS Code and Tariffs (http://exportsource.ca/gol/exportsource/site.nsf/en/es01972.html)
• Commodity Classification - Schedule B is a U.S. Census Bureau site which lists the commodity codes for goods imported into the U.S. -  US Census (http://www.census.gov/foreign-trade/schedules/b/2000/imp-code.txt)  

Interested in other trade classifications? This site describes the United Nations Food and Agriculture Organization's commodity classification system.  Definition and Classification of Commodities - Food and Agriculture Organization of the United Nations (http://www.fao.org/waicent/faoinfo/economic/faodef/FAODEFE.HTM)

It also provides comparisons between this system, the HS system and the Standard International Trade Classification (SITC) both the current revision 3 and the older revision 2 system the United Nations still uses to track trade.

The section and chapter format of the SITC can be seen at this site: Reportweb (http://reportweb.usitc.gov/commodities/naicsicsitc.html 

This Canadian site presents the SITC rev. 3 up to four digits -Standard International Trade Classification, Revision 3 (http://pacific.commerce.ubc.ca/trade/sitc3-2.html) 

Harmonized Commodity Description & Coding System

SECTION II - Vegetable Products (Chapters 6-14)
Chapter Description
06 Live Trees and Other Plants; Bulbs, Roots and the Like; Cut Flowers and Ornamental Foliage.
07 Edible Vegetables and Certain Roots and Tubers
08 Edible Fruit and Nuts; Peel of Citrus Fruit or Melons
09 Coffee, Tea, Mate and Spices
10 Cereals
11 Products of the Milling Industry; Malt; Starches; Inulin; Wheat Gluten
12 Oil Seeds and Oleaginous Fruits; Misc. Grains, Seeds & Fruit; Industrial or Medicinal Plants; Straw and Fodder
13 Lac; Gums Resins and Other Vegetable Saps and Extracts
14 Vegetable Plaiting Materials; Vegetable Products not Elsewhere Specified or Included

SECTION III - Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes (Chapter 15)
Chapter Description
15 Animal or Vegetable Fats and Oils and their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes

SECTION IV - Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and Manufactured Tobacco Substitutes (Chapters 16-24)
Chapter Description
16 Preparations of Meat, of Fish Or of Crustaceans, Molluscs or Other Aquatic Invertebrates
17 Sugars and Sugar Confectionery
18 Cocoa and Cocoa Preparations
19 Preparations of Cereals, Flour, Starch or Milk; Pastry Cooks' Products
20 Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants
21 Misc. Edible Preparations
22 Beverages, Spirits and Vinegar
23 Residues and Waste From the Food Industries; Prepared Animal Fodder
24 Tobacco and Manufactured Tobacco Substitutes

SECTION V - Mineral Products (Chapters 25-27)
Chapter Description
25 Salt, Sulphur, Earths and Stone; Plastering Materials, Lime and Cement
26 Ores, Slag and Ash
27 Mineral Fuels, Mineral Oils and Products Or Their Distillation; Bituminous Substances; Mineral Waxes

SECTION VI - Products of the Chemical or Allied Industries (Chapters 28-38)
Chapter Description
28 Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, Of Rare-earth Metals, of Radioactive Elements or of Isotopes
29 Organic Chemicals
30 Pharmaceutical Products
31 Fertilizers
32 Tanning Or Dyeing Extracts; Tannins & Their Derivatives; Dyes, Pigments Other Colouring Matter; Paints and Varnishes; Putty and Other Mastics; Inks
33 Essential Oils and Resinoids; Perfumery, Cosmetic or Toilet Preparations
34 Soap, Organic Surface-active Agents, Washing Preparations, Lubricating Preparations, Artificial Waxes, Prepared Waxes, Polishing or Scouring Preparations, Candles and Similar Articles, Modelling Pastes, "Dental Waxes" and Dental Preparations with a Basis of Plaster.
35 Albuminoidal Substances; Modified Starches; Glues; Enzymes
36 Explosives; Pyrotechnic Products; Matches; Pyrophoric Alloys; Certain Combustible Preparations
37 Photographic Or Cinematographic Goods
38 Misc. Chemical Products

SECTION VII - Plastics and Articles Thereof; Rubber and Articles Thereof (Chapters 39-40)
Chapter Description
39 Plastics and Articles Thereof
40 Rubber and Articles Thereof

SECTION VIII - Raw Hides and Skins, Leather, Fur skins and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags, and Similar Containers; Articles of Animal Gut (Other Than Silkworm Gut) (Chapters 41-43)
Chapter Description
41 Raw Hides and Skins (Other Than Fur skins) and Leather
42 Articles of Leather; Saddlery and Harness; Travel Goods, Handbags and Similar Containers; Articles of Animal Gut (Other Than Silk-worm Gut)
43 Fur skins and Artificial Fur; Manufactures Thereof

SECTION IX - Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork (Chapters 44-46)
Chapter Description
44 Wood and Articles of Wood; Wood Charcoal
45 Cork and Articles of Cork
46 Manufactures of Straw, of Esparto Or of Other Plaiting Materials; Basketware and Wickerwork

SECTION X - Pulp of Wood or of other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard; Paper and Paperboard and Articles Thereof (Chapters 47-49)
Chapter Description
47 Pulp of Wood Or Other Fibrous Cellulosic Material; Waste and Scrap of Paper Or Paperboard
48 Paper and Paperboard; Articles of Paper Pulp, of Paper Or of Paperboard
49 Printed Books, Newspapers, Pictures and Other Products of the Printing Industry; Manuscripts, Typescripts and Plans

SECTION XI - Textiles and Textile Articles (Chapters 50-63)
Chapter Description
50 Silk
51 Wool, Fine Or Coarse Animal Hair; Horsehair Yarn and Woven Fabric
52 Cotton
53 Other Vegetable Textile Fibres; Paper Yarn and Woven Fabrics of Paper Yarn
54 Man-made Filaments
55 Man-made Staple Fibres
56 Wadding, Felt and Nonwovens; Special Yarns; Twine, Cordage, Ropes and Cables and Articles Thereof
57 Carpets and Other Textile Floor Coverings
58 Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery
59 Impregnated, Coated, Covered Or Laminated Textile Fabrics, Textiles Articles Of A Kind Suitable for Industrial Use
60 Knitted Or Crocheted Fabrics
61 Articles of Apparel and Clothing Accessories, Knitted Or Crocheted
62 Articles of Apparel and Clothing Accessories, Not Knitted Or Crocheted
63 Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags

SECTION Xll - Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers and Articles Made Therewith; Artificial Flowers; Articles of Human Hair (Chapters 64-67)
Chapter Description
64 Footwear, Gaiters and the Like; Parts of Such Articles
65 Headgear and Parts Thereof
66 Umbrellas, Sun Umbrellas, Walking-sticks, Seat-sticks, Whips, Riding-crops and Parts Thereof
67 Prepared Feathers and Down and Articles Made of Feathers or of Down; Artificial Flowers; Articles of Human Hair

SECTION Xlll - Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass and Glassware (Chapters 68-70)
Chapter Description
68 Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials
69 Ceramic Products
70 Glass and Glassware

SECTION XlV - Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin (Chapter 71)
Chapter Description
71 Natural Or Cultured Pearls, Precious Or Semi-precious Stones, Precious Metals, Metals Clad with Precious Metal, and Articles Thereof: Imitation Jewellery; Coin

SECTION XV - Base Metals and Articles of Base Metal (Chapters 72-83)
Chapter Description
72 Iron and Steel
73 Articles of Iron Or Steel
74 Copper and Articles of Thereof
75 Nickel and Articles Thereof
76 Aluminum and Articles Thereof
78 Lead and Articles Thereof
79 Zinc and Articles Thereof
80 Tin and Articles Thereof
81 Other Base Metals; Cermets; Articles Thereof
82 Tools, Implements, Cutlery, Spoons, and Forks, of Base Metal; Parts Thereof of Base Metal
83 Misc. Articles of Base Metal

SECTION XVl - Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles (Chapters 84-85)
Chapter Description
84 Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof
85 Electrical Machinery and Equipment and Parts Thereof Sound Recorders and Reproducers, TV Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles

SECTION XVll - Vehicles, Aircraft, Vessels and Associated Transport Equipment (Chapters 86-89)
Chapter Description
86 Railway or Tramway Locomotives, Rolling-stock and Parts Thereof; Railway or Tramway Track Fixtures and Fittings and Parts Thereof; Mechanical (Including Other Than Railway Or Tramway Rolling-stock, and Parts and Accessories Thereof
87 Vehicles Other Than Railway Or Tramway Rolling-stock, and Parts and Accessories Thereof
88 Aircraft, Spacecraft and Parts Thereof
89 Ships, Boats and Floating Structures.

SECTION XVlll - Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical Instruments and Apparatus; Clocks and Watches; Musical Instruments; Parts and Accessories Thereof (Chapters 90-92)
Chapter Description
90 Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical Or Surgical Instruments and Apparatus; Parts and Accessories Thereof
91 Clocks and Watches and Parts Thereof
92 Musical Instruments; Parts and Accessories of Such Articles

SECTION XlX - Arms and Ammunition; Parts and Accessories Thereof (Chapter 93)
Chapter Description
93 Arms and Ammunition; Parts and Accessories Thereof

SECTION XX - Miscellaneous Manufactured Articles (Chapters 94-96)
Chapter Description
94 Furniture; Bedding; Mattress; Mattress Supports, Cushions and Similar Stuffed Furnishings; Lamps and Lighting Fittings, not Elsewhere Specified or Included; Illuminated Signs, Illuminated Name-plates and the Like; Prefabricated Buildings.
95 Toys, Games and Sports Requisites; Parts and Accessories Thereof
96 Misc. Manufactured Articles

SECTION XXl - Works of Art, Collectors' Pieces and Antiques (Chapter 97)
Chapter Description
97 Works of Art, Collectors' Pieces and Antiques

OTHER HEADINGS
Chapter Description
98 Reserved for special use by Contracting Parties
99 Reserved for special use by Contracting Parties

For further information regarding exporting, see the document  Exporting Info-Guide, visit the Trade and Export section on our Web site  Canada-Saskatchewan Business Service Centre  or contact the

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Prepared by: Canada/Manitoba Business Service Centre