How to Read and Use HS Codes for Export

Every product that crosses an international border is identified by a number. This number — the Harmonized System (HS) code — determines everything about your shipment: what tariff the buyer's country charges, what regulations apply, whether your goods are banned or restricted, and what export incentives you can claim. Getting your HS code wrong is one of the most expensive mistakes an exporter can make.

The HS code system can seem intimidating at first — thousands of codes, multiple layers of digits, different countries using different extensions. This guide breaks it down into plain language so you can classify your products correctly, avoid customs problems, and claim the right incentives.

What Is the Harmonized System?

The Harmonized System is a standardised numerical system for classifying traded products. It was developed by the World Customs Organisation (WCO) and is used by over 200 countries and territories, covering 98% of global trade. When you ship goods from India to any country in the world, both Indian Customs and the destination country's customs use HS codes to identify your product.

The system was introduced in 1988 and is updated every five years. The current version (HS 2022) came into effect in January 2022.

The Structure — Understanding the Digits

HS codes work like a tree, getting more specific with each pair of digits:

2-Digit: Chapter (97 chapters)

The first two digits identify the broad product category. Examples:

• 10 — Cereals
• 52 — Cotton
• 61 — Knitted or crocheted apparel
• 71 — Gems and jewellery
• 84 — Machinery
• 30 — Pharmaceuticals

There are 97 chapters in the HS system, organised from raw materials (chapters 1-24 for agricultural products) to manufactured goods (chapters 84-97 for machinery and precision instruments).

4-Digit: Heading (~1,200 headings)

The first four digits narrow the product to a specific heading. Examples:

• 1006 — Rice (within chapter 10, Cereals)
• 6109 — T-shirts and vests, knitted (within chapter 61, Knitwear)
• 3004 — Medicaments in dosage form (within chapter 30, Pharmaceuticals)

6-Digit: Subheading (~5,000 subheadings)

The first six digits are internationally standardised — the same in India, the USA, Germany, Japan, and every other WCO member. This is the universal language of trade.

Examples:

• 100630 — Semi-milled or wholly milled rice
• 090420 — Dried capsicum and pimenta, crushed or ground (chilli powder)
• 300490 — Medicaments of mixed or unmixed products, in dosage form

8-Digit: National Tariff Line (India-specific)

Beyond 6 digits, each country adds its own extensions for more specific classification. India uses an 8-digit system (Indian Trade Classification based on the Harmonized System, or ITC-HS):

• 10063020 — Basmati rice (India-specific subdivision of 100630)
• 10063010 — Parboiled rice
• 10063090 — Other semi-milled/wholly milled rice

These 8-digit codes determine Indian customs duty rates and export policy (free, restricted, or prohibited).

Quick Reference Table

Digits	Level	Standardised?	Example	Meaning
2	Chapter	Global	10	Cereals
4	Heading	Global	1006	Rice
6	Subheading	Global	100630	Milled rice
8	Tariff line	India only	10063020	Basmati rice

The critical point: When communicating with an international buyer, always use the 6-digit code as the common reference. Your 8-digit code is India-specific and may not match the buyer's country's 8-digit extension.

How to Find the Right HS Code for Your Product

Method 1: Use the XIMPEX HS Code Finder

The fastest way is to use the HS Code Finder tool. Enter your product name or description, and the tool searches across India's complete tariff schedule to find matching codes. You can then drill down to see:

• Duty rates by destination country
• Export policy status (free/restricted/prohibited)
• Related products and alternative codes

Method 2: DGFT ITC-HS Schedule

The official source is the Indian Trade Classification (ITC-HS) schedule published by DGFT. Available at dgft.gov.in. Search by keyword or browse by chapter.

Method 3: Customs Broker

If you're unsure about classification, your customs broker (CHA — Custom House Agent) can help. They deal with HS classification daily and know the nuances.

Method 4: Advance Ruling

For complex or new products, you can apply for an Advance Ruling from the Customs Authority for Advance Rulings (CAAR). This gives you a legally binding classification that customs officers must accept.

Why Getting the HS Code Right Matters

Tariff Impact

Different HS codes can mean vastly different duty rates at the destination. Example:

Code	Product	US Tariff	EU Tariff
610910	Cotton T-shirt	16.5%	12%
611010	Wool pullover	16%	12%
620520	Cotton woven shirt	19.7%	12%
630231	Cotton bed linen	6.2%	12%

Misclassifying a cotton T-shirt as a woven shirt could mean your buyer pays 19.7% instead of 16.5% in US duty — making your product less competitive.

Export Incentives

RoDTEP (Remission of Duties and Taxes on Exported Products) rates are assigned at the 8-digit HS code level. The wrong code means the wrong incentive rate — or no incentive at all.

Regulatory Compliance

Some HS codes trigger specific regulatory requirements:

• Food products under certain codes require FSSAI and phytosanitary certificates
• Chemicals under specific codes require REACH registration in the EU
• Electronics under certain codes require BIS certification

Anti-Dumping Duties

Specific HS codes may be subject to anti-dumping or countervailing duties in certain countries. Using the wrong code can either expose you to unexpected duties or cause your shipment to be flagged for investigation.

Common Classification Mistakes

Classifying by material instead of function. The HS system generally classifies finished products by their function, not their material. A steel table is classified under furniture (chapter 94), not iron/steel (chapter 72).

Ignoring the "rule of last substantial transformation." If your product undergoes multiple processing steps, classify the final product, not the raw material. Raw cotton (5201) becomes cotton yarn (5205) becomes cotton fabric (5208) becomes a cotton shirt (6205) — each has a completely different HS code.

Using outdated codes. The HS system is updated every five years. Codes that existed in HS 2017 may have been split, merged, or deleted in HS 2022. Always verify your code against the current schedule.

Misclassifying sets and kits. A gift set containing multiple products is classified based on the component that gives it its "essential character." A skincare kit with three creams and one brush would be classified under the cream HS code, not the brush code.

Confusing Indian 8-digit codes with other countries' codes. India's 10063020 (basmati rice) is India-specific. The EU's equivalent might be a completely different 8-digit extension. Always use the 6-digit code (100630) for international communication.

HS Codes and Free Trade Agreements

When India has an FTA or preferential trade agreement with a country (e.g., CEPA with UAE, SAFTA with South Asian countries), the preferential tariff rates are assigned at specific HS code levels. To claim preferential tariffs:

1. Confirm your exact HS code
2. Check if that code is covered under the FTA's tariff concession schedule
3. Obtain a Certificate of Origin in the FTA-prescribed format
4. Ensure your product meets the Rules of Origin (typically 35-40% domestic value addition)

HS Codes on XIMPEX

XIMPEX maintains a complete database of HS codes with export data for every code. You can explore:

• All HS codes — browse by chapter or search by keyword
• Export data by HS code — see which countries import each product and at what volumes
• Duty rates — check what tariff your buyer will pay in their country

Key Takeaways

• HS codes are a universal product classification system used by 200+ countries
• The first 6 digits are internationally standardised — use these when communicating with foreign buyers
• India adds 2 more digits (8-digit ITC-HS) for its national tariff schedule
• Wrong HS code = wrong duty rate, wrong incentives, potential customs detention
• Use the HS Code Finder for quick, accurate classification
• When in doubt, get an Advance Ruling from CAAR for a legally binding classification
• Always verify your code against the current HS schedule (HS 2022)

Next Steps

1. Look up your product in the HS Code Finder — enter the product name and get matching codes with duty rates
2. Check export data for your HS code — see trade statistics for export values by country and year
3. Calculate duties for your target market using the Duty Calculator
4. Confirm export policy — check if your product is freely exportable or restricted under India's DGFT schedule
5. Save your codes — you'll need them for every shipping bill, commercial invoice, and Certificate of Origin

Mastering HS codes is not glamorous, but it is the foundation of successful exporting. Get this right, and every other step in the export process becomes smoother.