Study Guide
2. Part 1: The Harmonized System
Learning objectives
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✓ |
Describe the purpose, structure, and governance of the Harmonized System |
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Explain the obligations and rights of Contracting Parties under the HS Convention |
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✓ |
Identify the components of the HS Nomenclature and the role of the Explanatory Notes |
The Harmonized System (HS) is the common name for an international goods classification system called the Harmonized Commodity Description and Coding System. It entered into force on 1 January 1988, under the auspices of the Customs Co-operation Council (renamed the World Customs Organization in 1994), an international customs body located in Brussels.
How the Harmonized System is structured (see also the section: Harmonized System Nomenclature → How an HS code is built)
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Component |
Description |
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Chapters (2-digit) |
Broad product category. Chapters are generally groupings of similar or related headings. |
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Headings (3- and 4-digit) |
The primary level of classification. Headings group related goods together. The first two digits indicate the chapters. |
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Subheadings (5- and 6- digit) |
Subdivisions of most headings. They give separate treatment or identification to the more commonly traded goods within each heading. |
The essence of the Harmonized System (HS) is to provide the world with a single, internationally standardised six‑digit code that identifies a commodity consistently throughout its economic life. One of the core objectives of the HS is to replace the many different product‑coding systems previously used across commercial sectors, thereby creating a common language for the naming and classification of goods.
A word you will often encounter in the context of international trade is “nomenclature.” In simple terms, a nomenclature is a structured system for naming things in a consistent and organised way. The HS is exactly that: a global nomenclature for goods, designed to ensure that every product can be classified, described, and understood in the same way by Customs administrations, traders, and statistical agencies worldwide.