📦 What Are HS Codes? Complete Guide for Exporters (2025)

Keyword Focus: what are HS codes

If you want to start or grow your export business, understanding HS Codes is absolutely essential. These codes play a major role in customs clearance, taxes, export documents, and global trade classification. This guide explains what HS codes are, how they work, how to find the correct HS code, and why every exporter must use them correctly.

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📌 What Are HS Codes?

HS Code (Harmonized System Code) is an internationally standardized 6-digit code used to classify traded goods. It is used by customs authorities worldwide to identify products, calculate duties, and verify export/import compliance.

The HS Code system is managed by the World Customs Organization (WCO) and is used by over 200 countries.

Example:
HS Code for Basmati Rice = 10063020

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📌 Why Are HS Codes Important for Exporters?

HS Codes are required in almost every stage of exporting:

• ✔ Customs clearance
• ✔ Preparing Shipping Bill
• ✔ Certificate of Origin
• ✔ Pricing & taxes
• ✔ Export incentives (RoDTEP, MEIS earlier)
• ✔ Trade data research
• ✔ Avoiding penalties or delays

Wrong HS Code = shipment delays + penalties + rejected export incentives

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📌 Structure of HS Code (How It Works)

A standard HS code contains 6 digits:

• First 2 digits = Chapter (Product category)
• Next 2 digits = Heading (Product type)
• Next 2 digits = Sub-heading (Detailed description)

Countries may add extra digits for more detail.

In India, HSN Codes are 8 digits for exports.

Example (Textiles):
61 → Articles of Apparel
6109 → T-shirts
610910 → Cotton T-shirts

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📌 HS Code vs HSN Code — What’s the Difference?

Both terms are related but used differently:

• HS Code (6 digits) – Global classification
• HSN Code (8 digits) – Indian classification for GST & exports

For export documentation, India uses HSN 8-digit codes.

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📌 How to Find the Correct HS Code for Your Product

Here are the simplest and most reliable methods:

1️⃣ Use DGFT or ICEGATE HS Code Search

• Search product name
• Check 6-digit HS code
• Confirm the 8-digit Indian HSN code

2️⃣ Check Indian Customs Tariff (ITC-HS)

This provides chapter-wise HS codes for all products.

3️⃣ Use WCO HS Code Directory

Useful for cross-checking global classification.

4️⃣ Ask Your Freight Forwarder or CHA

They use HS codes daily and can confirm the correct code instantly.

5️⃣ Analyze similar competitor products

Check their HS codes on export invoices or trade portals.

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📌 Common HS Codes for Popular Export Products

• Spices → 0904–0910
• Basmati Rice → 10063020
• Apparel (Cotton T-Shirts) → 61091000
• Handicrafts → varies by material (wood, metal, jute)
• Engineering Goods → 84, 85, 87 chapters
• Pharmaceuticals → 30 chapter

Tip: Always confirm the exact 8-digit code before shipping.

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📌 How HS Codes Affect Export Pricing

HS Codes decide:

• ✔ Export duty
• ✔ Import duty in buyer country
• ✔ GST applicability
• ✔ Incentives under RoDTEP

Choosing the correct HS code can increase your profit margins.

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📌 Wrong HS Code Can Cause These Problems

• ❌ Shipment delay
• ❌ Customs penalty
• ❌ Incorrect tax calculation
• ❌ Export incentives blocked
• ❌ Shipment held at destination port

Always verify your HS code before filing Shipping Bill.

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📌 Where HS Codes Are Used in Export Documents

• Commercial Invoice
• Packing List
• Shipping Bill (ICEGATE)
• Certificate of Origin
• Export Declaration Forms
• Bill of Lading

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📘 Related Articles

👉 Export Documentation in India — Complete List

👉 How to Start Export Business from India

👉 Top Export Products from India (2025)

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❓ FAQs — HS Codes for Exporters

1. What is an HS Code used for?

For classifying goods in international trade for customs, taxes, and compliance.

2. How many digits are in an HS code?

Globally 6 digits; India uses 8-digit HSN codes.

3. Can I export without HS Code?

No. HS Code is mandatory for customs and shipping documents.

4. How do I know my product’s HS code?

Use DGFT, ITC-HS list, WCO directory, or ask your freight forwarder.

5. Can wrong HS code reject my shipment?

Yes. Incorrect HS code can cause delays, penalties, and missing incentives.

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