HS Codes: Key to Hassle-Free International Shipping with Boundr

Posted by Boundr | 12 September 2024

Navigating customs requirements when shipping goods internationally can be daunting. One essential element in global shipping is HS codes (Harmonized System codes). These standardized numerical codes classify traded products and are used globally for customs declarations, ensuring that your shipment complies with international regulations. Knowing how HS codes work and how they impact your shipping can help avoid costly delays, fines, or errors.

In this blog, we’ll explore HS codes, why they’re crucial, and how Boundr simplifies the process of using HS codes to ship internationally.

What Are HS Codes?

HS codes are part of an internationally recognized system developed by the World Customs Organization (WCO) to categorize products for cross-border trade. The system consists of six digits that identify the type of goods being shipped. Each country can extend these codes to further classify products, typically using 8 to 10 digits for greater specificity.

For example:

The HS code for a smartphone may start with 8517, which refers to telecommunication devices.
Apparel, like a t-shirt, might begin with 6109 for knitted or crocheted clothing.

The HS code identifies the product and helps customs authorities determine the applicable taxes, duties, and restrictions for that item. If you're shipping multiple items internationally, each item type will need its unique HS code.

Why Are HS Codes Important for International Shipping?

Customs Clearance: HS codes are vital for efficiently processing your shipment through customs. Incorrect or incomplete HS codes can result in customs delays, rejections, or even fines. Customs officers use these codes to quickly identify and classify your goods, ensuring they meet local regulations.

Duties and Taxes: HS codes play a key role in determining the duties, taxes, and other import fees that apply to your shipment. Since different countries impose varying tariffs on specific goods, using the correct HS code ensures that you’re accurately charged and helps you avoid unexpected costs.

Trade Compliance: International trade regulations can differ significantly from one country to another. By using the right HS code, you ensure that your shipment complies with the import/export laws of the destination country, minimizing the risk of having your goods held up at customs.

How Boundr Simplifies International Shipping with HS Codes

At Boundr, we understand that navigating international shipping can be complicated, particularly when dealing with customs procedures and HS codes. That’s why we’ve made it easier for you to handle this part of the process when preparing to send items through our platform.

Here’s how we help:

Pre-filled HS Codes for All Items:
For all items, Boundr offers pre-filled HS codes. Just provide a description of your items, and we'll add them to your shipping details. This feature allows you to automatically obtain the correct HS code without manually searching for it, saving you time and reducing the chance of errors.

Customs Documentation Assistance:

Once we receive and inspect your items and ensure they're aligned with the HS code, we'll generate the necessary customs paperwork. This ensures that your shipment is properly documented and ready for customs clearance, reducing the risk of delays.

Duties & Tax Calculations:

HS codes are used by customs authorities to determine the duties and taxes applicable to your shipment. By entering the correct HS code, you can better understand the potential customs fees involved. This will help you anticipate the total cost of your international shipment more accurately and make it easier to budget for any additional charges.

Expert Support:

Need help with your Boundr order? Our team reviews HS codes at our facility when you receive your shipment and updates them if necessary. We're here to assist with any issues related to your Boundr shipment, including troubleshooting customs documentation for a smoother international shipping experience.

Real-Life Example of HS Code Use

Imagine you’re a small business owner shipping handmade jewelry to customers overseas. By using the HS code 7113, which classifies jewelry of precious metal, customs authorities in the destination country can quickly process your shipment. They’ll apply the correct duties based on this category, and your package will move through customs without unnecessary delays.

Without the correct HS code, your package could be flagged for further inspection, incurring additional fees and slowing delivery to your customer. Having the right code ensures compliance and keeps your shipping experience stress-free.

How to Find the Correct HS Code

Finding the correct HS code for your item is easier than you think. Here are a few ways to identify the right code:

Boundr’s Built-In Tool:

Our platform helps assign the correct HS code based on the details you provide about your items. Please note, the HS code may be updated during processing at our facility before your shipment is sent out, ensuring accurate classification for customs purposes.

HS Code Lookup Databases:
You can also find HS codes using online databases, such as the World Customs Organization’s Harmonized System database or the local customs website for your destination country.

Contact Your Carrier:
Your shipping carrier may also offer support or advice on finding HS codes for specific items. They work closely with customs officials and can often provide insight into which codes to use.

Consequences of Using Incorrect HS Codes

Using the wrong HS code can have serious consequences, including:

Customs Delays: Incorrect codes can cause your package to be flagged for further inspection, slowing down delivery.
Fines or Penalties: Misclassifying goods can result in fines from customs authorities for non-compliance with regulations.
Inaccurate Fees: Using an incorrect HS code can result in the wrong duties or taxes being applied by customs authorities, leading to unexpected additional charges that are separate from your shipment cost.

Stay Compliant with International Trade Regulations

HS codes are regularly updated, with new codes introduced and others revised. For instance, as industries evolve and new products (such as smart home devices) are developed, the WCO revises the HS system every five years to reflect these changes. Boundr stays up-to-date on these updates, so you don’t have to worry about outdated information causing shipping errors.

Ship Internationally with Confidence Using Boundr

Navigating international shipping doesn’t have to be a headache. By understanding the importance of HS codes and using Boundr’s tools and support, you can ensure a smooth and cost-effective shipping process. Whether shipping a single package or running an international business, we’re here to make your shipping experience easy and stress-free.

Start shipping internationally with Boundr today using our simple, intuitive platform. Get a quick quote, manage your shipments with ease, and streamline your international shipping process—no matter where you're sending your package.