Harmonized System

The Harmonized System (HS) is a system of codes used by over 200 countries and territories to classify goods when they are traded around the world. It helps governments know what products are being shipped between countries, and what duties should be applied on the goods. Each product is given a special code, made up of numbers and letters, so that it is easily recognizable. When a shipment of goods is going from one country to another, it must have the HS code on it, so that customs knows what taxes should be applied to it.