HS Code for Imports from China: A Guide to the Harmonized System

HS codes, or Harmonized System customs tariffs, represent an international standard for goods classification used by over 200 countries worldwide. Each imported or exported product receives a unique numerical code that precisely defines its nature and purpose. These codes are crucial for determining duties, taxes, restrictions, and maintaining international trade statistics. Without proper HS code usage, customs clearance problems, delays, additional costs or even penalties may occur. Though they may seem like pure bureaucracy, they are actually the foundation of successful and legal international business. Accurate HS codes also enhance import/export transparency, which is essential for globally operating companies. This article explains what HS codes are, how they work, how to find and use them, and what to pay special attention to when importing goods from China.

HS code (Harmonized System) is a standardized numerical identifier used in customs declarations worldwide. Developed by the World Customs Organization (WCO), it enables standardized classification of over 5,000 product groups. It forms the basis of most national customs tariff systems and directly affects harmonized tariff schedules in trade agreements.

Table of Contents

• What is an HS code?
• Brief history and system development
• HS code structure
• Why are HS codes important?
• How to find the correct HS code?
• Common classification mistakes
• HS code examples
• HS codes in Serbia
• TARIC system
• HS codes in USA
• HS codes in China
• Comparison tables
• Using HS codes in documentation
• How to avoid misclassification
• Case study
• HS, CN, TARIC and HTS: What's the difference?
• Serbia-China Free Trade Agreement
• Future of HS codes
• Conclusion

1. What is an HS code?

HS code is a numerical identifier used by over 200 countries in customs declarations. Developed by the World Customs Organization (WCO), it enables standardized classification of over 5,000 product groups. It forms the basis of most national customs tariff systems and directly affects harmonized tariff schedules in trade agreements.

2. Brief history and system development

The system was introduced in 1988 and became the foundation of all national tariff nomenclatures. It's updated every five years to track technological changes, new products and market developments, ensuring its relevance in import/export classification systems.

3. HS code structure

HS code consists of 6 basic digits divided into:

• First 2 digits - Chapter
• Next 2 digits - Heading
• Last 2 digits - Subheading

Countries may extend the code to 8 or more digits (e.g., CN codes in EU, TARIC codes in Serbia) for more detailed product classification.

4. Why are HS codes important?

• Without accurate classification you cannot properly calculate customs duties using duty calculators,
• Your goods may be detained or returned at border,
• You may violate international trade regulations,
• You lose time and money in trade processes.

5. How to find the correct HS code?

1. Using online databases like TARIC system (for EU).
2. Consulting freight forwarders or customs brokers.
3. Reviewing official tariff classifications published by your country.
4. Using tools like WCO HS code explanations or tariff search apps.

6. Common classification mistakes

• Using incorrect codes from other countries without local verification
• Choosing codes based on visual similarity rather than product function
• Using outdated codes removed in recent HS system revisions

7. HS code examples

• Car tires - 4011.10
• Laptop computers - 8471.30
• Plastic bottles - 3923.30
• Cotton t-shirts - 6109.10

8. HS codes in Serbia

Serbia uses a combined nomenclature aligned with European CN codes. The Customs Administration publishes regular tariff versions with local extensions, while the TARIC system provides additional trade policy measures.

Read more about customs for importing goods from China to Serbia and the Serbia-China Free Trade Agreement on: Customs for importing goods from China to Serbia

9. TARIC system

TARIC (Integrated Tariff of the European Communities) is a comprehensive EU database containing all applicable duties, control measures, prohibitions and quotas by tariff lines. Essential for all performing tariff classification within EU.

Image explanation

First 6 digits (620462) are part of international HS system (Harmonized System) used by all WTO members.

Next 2 digits (31) are part of CN code (Combined Nomenclature) - used throughout EU.

Last 2 digits (00) are TARIC supplement, which may add additional measures, prohibitions, quotas etc. (used only within EU customs system).

10. HS codes in USA

The United States uses HTSUS (Harmonized Tariff Schedule of the United States), based on HS codes and extended to 10 digits. This system is published and updated by USITC, and used by CBP (US Customs) to apply duties, quotas and trade agreements.

11. HS codes in China

China uses its own tariff system version based on HS codes and extended through China Customs Tariff. The system includes additional markings for inspections, permits and export controls. The responsible authority is GACC (General Administration of China Customs), with tariffs varying depending on trade agreements or FTZ regimes.

Similarities among EU, USA, Serbia and China

Differences among tariff systems

12. Using HS codes in documentation

• Customs declarations
• Invoices
• Packing lists
• Certificates of origin

13. How to avoid misclassification

• Consult with experts and freight forwarders
• Use official databases and product code search tools
• Follow WCO updates published every five years

Case Study: How incorrect HS codes can cost thousands

Importers often neglect the importance of accurate goods classification. For example, a Serbian company ordered LED lighting from China and listed HS code for electrical components (8536) instead of specific code for LED lamps (9405). Upon arrival, customs requested additional verification and correct classification. Result: shipment detained for 12 days, additional duties paid (12% of goods value), and external freight forwarder engaged for documentation revision.

Such mistakes are common and always costly. Precise classification is crucial.

HS, CN, TARIC and HTS: What's the difference?

Where to check duty rates by HS code?

HS code directly affects duty amount. It determines:

• Duty rate (% on base value)
• Additional charges (e.g. excise, anti-dumping)
• VAT calculation
• Required permits or inspections

Sample duty calculation (approximate)

Invoice value: 10,000 EUR
HS code: 850440 (Chargers and adapters)
Duty rate: about 2-5% (depending on country and agreements)
Duty (assuming 3%): 300 EUR
VAT (20% on base + duty): 2,060 EUR
Total duty cost: 2,360 EUR

Note: Rates vary and should be checked in official databases. Also, benefits exist through free trade agreements.

Where to check rates?

• TARIC (EU)
• HTS (USA)
• Serbian Customs

How to find correct HS code in China?

• HSCode.net - Chinese portal
• GACC - Chinese Customs
• Alibaba seller info - as auxiliary source only

Note: Codes from China often don't match TARIC/HTS codes. Always verify in importing country.

Risks of incorrect classification

• Delays and shipment detention
• Fines for inaccurate data
• Retroactive duties after inspection
• Loss of import benefits (preferential rates)

Where to enter HS code?

• On pro forma and commercial invoices
• On packing lists (if relevant)
• In JCI form (Serbia)
• On certificates of origin

Serbia has customs benefits in trade with China

thanks to the Free Trade Agreement effective from 01.07.2024.

How it works in practice:

• Serbia-China Agreement provides:
  • Gradual elimination of duties on many Chinese products
  • Preferential duty rates (often 0%) for certain products, but only if all conditions are met:
    • Goods originate from China (proven by certificate of origin)
    • HS code is correctly classified
    • Importer claims preferential treatment in customs declaration

14. Future of HS codes

Digitalization and artificial intelligence in logistics and trade introduce challenges and opportunities for automatic product classification. Future HS system revisions will focus more on new technologies, e-commerce and environmental protection, making product classification systems more dynamic.

HS system future predictions

• Automatic classification via AI
• Blockchain goods traceability
• Integration with e-commerce platforms (Temu, Shein, AliExpress)

Conclusion

HS code isn't just a number - it's the foundation of successful and legal international trade. Precise product classification ensures savings, security and efficiency. Don't leave code selection to chance - consult experts and use official sources. Stay compliant with laws and informed about all changes in the harmonized system.