Understanding HS Code in International Trade

The Harmonized System Code (HS Code) is a standardized performance system used globally for the identification and classification of products. Governments use this system to manage tax policies, pricing strategies, budgeting, and economic planning. HS Codes help in regulating both tariff and non-tariff measures, as well as customs statistics, making them an essential tool in international trade.

The Harmonized System Code (HS Code) is a standardized performance system used globally for the identification and classification of products. Governments use this system to manage tax policies, pricing strategies, budgeting, and economic planning. HS Codes help in regulating both tariff and non-tariff measures, as well as customs statistics, making them an essential tool in international trade. In global trade, all goods are classified according to the Harmonized International Standard. In Iran, the Export and Import Regulations Office of the Trade Development Organization organizes goods into 21 parts and 98 chapters. These classifications are formatted into an eight-digit code, and the regulations are updated and published annually for public access. This structured classification aids in the smooth functioning of the country’s trade policies.

 Each product is assigned a unique eight-digit code, commonly referred to as the tariff number, which remains consistent across various governmental and trade organizations. This code helps to specify product details and is essential in trade documents, such as invoices. The HS Code standardization ensures that sellers and buyers in the global market have a clear understanding of product specifications, simplifying trade transactions.

 The HS Code system is implemented internationally through the World Trade Organization (WTO), where goods are classified using an 8 or 10 digit code. The first 4 or 6 digits are shared globally among member countries, while the last 2 or 4 digits may vary depending on national classification preferences. This makes it a versatile tool for distinguishing goods during international correspondence and trade agreements.

 Since the first 6 digits of the tariff number are universally common, the HS Code system provides an efficient and consistent way to distinguish products globally. Below, we have provided the HS Codes for nuts and dried fruits, to assist in smooth international trade for these commodities.