HS Classification

The Harmonized System is the international product-classification framework maintained by the World Customs Organization. Almost every country uses it as the basis for assigning tariffs, applying trade programs, gathering trade statistics, and running screening rules. An HS code is the number a product gets inside the system — the foundation of nearly every downstream trade-compliance decision.

HS, HTS, and the digits

The first six digits of an HS code are common across the countries that have adopted the system — they identify a product the same way whether it is entering the United States, the European Union, Mexico, or Japan. Beyond six digits, each country extends the code with its own additional digits to drive its tariff schedule. In the United States the extended code is called the HTS, typically ten digits (HTS10); the equivalent in other jurisdictions has different lengths and names. The first six digits match HS globally; the additional digits are country-specific.

The classification process

HS classification is the process of selecting the correct HS or HTS code for a product based on its description, materials, function, intended use, and the rules of the Harmonized System. Correct classification determines the applicable duty rate, eligibility for trade programs, screening rules, and whether trade-remedy programs (antidumping, countervailing, Section 232) apply.

The classification decision is governed by the General Rules of Interpretation, a set of six numbered rules that apply in sequence to determine which heading and subheading a product belongs to. GRI 1 says you classify by the terms of the headings and the section/chapter notes; GRIs 2 through 5 cover mixtures, composite goods, sets, packaging, and other edge cases; GRI 6 extends the rules to subheading level. Customs authorities expect the chosen code to be defensible against the GRIs.

Transshipment

Transshipment — routing goods through an intermediate country between manufacture and import — doesn't change the HS code, but it does change the trade-compliance posture. Goods that move through a third country can still carry their original country of origin, and misrepresenting where transformation actually occurred is a compliance risk. The HS code stays the same; the country of origin is the field that needs care.

How you'll see this in Altana

• Every product in the catalog carries an HS code (and, where applicable, the country-specific HTS extension) as a classification attribute. Status indicates whether the code has been suggested by Altana, accepted by a user, or is pending review.
• Classification workspaces run against the catalog and surface unclassified products, low-confidence suggestions, and codes that may need review against the GRIs.
• Shipments carry the HS code declared on the bill of lading or customs record — observed. Altana also produces an HS suggestion based on the goods description when the declared code is thin or missing — derived, with confidence.
• The duty workflow reads HS and country of origin together to compute the applicable rate and to flag program eligibility.

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