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Understanding HS Codes: A Complete Guide for Canadian Importers

The Harmonized System (HS) is an international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes.

What is an HS Code?

An HS code is a standardized numerical method of classifying traded products. Used by customs authorities around the world, HS codes are typically 6-10 digits long. In Canada, we use 10-digit codes under the Canadian Customs Tariff.

Structure of HS Codes

  • **Chapters (2 digits)**: Broad product categories (e.g., Chapter 85 = Electrical machinery)
  • **Headings (4 digits)**: More specific groupings
  • **Subheadings (6 digits)**: International standard level
  • **Tariff items (8-10 digits)**: Canada-specific classifications

    • Why Correct Classification Matters

    Misclassifying your goods can result in:

  • Overpaying duties
  • Penalties from CBSA
  • Delayed shipments
  • Missed trade agreement benefits

    • Tips for Classification

    1. Know your product's material composition

    2. Understand its primary function

    3. Check the General Rules of Interpretation

    4. Use our AI classification tool for suggestions

    5. When in doubt, consult a licensed customs broker

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