HS Code

An HS Code (Harmonized System Code) is a standardized numerical classification system used worldwide to identify traded products. Maintained by the World Customs Organization, it uses a six-digit base code that is universally recognized, with individual countries adding additional digits for further classification. HS Codes determine the duty rates, taxes, and regulatory requirements that apply to imported or exported goods.

In Freight Forwarding

Correct HS Code classification is critical for customs clearance. An incorrect code can result in wrong duty calculations, shipment holds, fines, or even seizure of goods. Freight forwarders must ensure that every line item on a commercial invoice is assigned the correct HS Code for both the origin and destination countries. Classification requires knowledge of the product's material, function, and intended use.

How CargoGen Handles It

CargoGen carries the HS code on each cargo line and commodity master, and the AI reads HS codes off commercial invoices and packing lists along with the rest of the document. Classification decisions stay with your team and your broker; CargoGen does not classify goods for you.