The world customs organization in 1977 developed a global trade language known as HS code. The HS code stands for harmonized system based classification code. This harmonized code list is used in more than 200 countries.

It is a multipurpose product based nomenclature used for knowing the customs tariffs and for collection of global trade statistics. The HS classification makes importers and exporters work easier by providing the data on chapter-based categorization.

HS code is the numerical code, which is used to describe a product that is being traded between the economies. Altogether about 98% of the total trade of the world is done by using the HS codes. It is a collection of codes divided under many sections like animal products, mineral products, vegetable products, aircraft, ammunition, etc.

The harmonized code List (https://www.seair.co.in/hs-codes.aspx) is organized in 21 sections and 96 chapters, accompanied by general rules and guidelines of interpretation. The HS codes list is related to all the trade-related data of the country. Numerous transactions occur every day, throughout the world involving the 6 digits of the globally accepted harmonized classification, that are extended up to 8, 10 or 12 digits, depending on the country’s customs and nature of commodities.

In India, the HS codes is known as the Indian trade clarification based on the harmonized system of coding. This adopted in India for simplifying the import and export operations both domestically and internationally. The Indian customs department uses an eight-digit ITC (HS) code.

The Indian harmonized code is divided into two parts.
ITC (HS) schedule 1 – tells the rules and guidelines related to import policies.
ITC (HS) schedule 2 – tells the rules and regulations related to export policies.

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