HS Code Assessment: What It Is & Why It Matters

Understanding HS Code Assessment: Importance and How to Check

  • InCorp Editorial Team
  • 3 April 2025
  • 6 minutes reading time

The global trade system uses a structured classification method to streamline imports and exports. One crucial tool in this system is the HS Code (Harmonized System Code).  

The standardized coding system helps businesses and customs authorities classify goods accurately, ensuring smooth international trade operations. Understanding the Harmonized System Code is essential if you are engaged in importing or exporting. 

This guide will cover everything you need to know about HS Code assessment, from its definition to how to find the right code for your product. 

What is an HS Code? 

The Harmonized System (HS) is a clear system for classifying goods. It helps make determining tariffs, conducting trade, transporting items, and recording statistics easier. In Indonesia, the HS Code classification follows the Harmonized System. This is explained in the Indonesian Customs Tariff Book (BTKI), the official guide for tariff rules. 

Objectives Of the HS System 

The primary goals of implementing the Harmonized System Code are: 

  • Standardizing product classification worldwide to ensure uniformity in trade. 
  • Facilitating data collection and statistical analysis of global trade activities. 
  • Providing an internationally recognized system for coding, describing, and categorizing goods for trade purposes. 

This classification is crucial for businesses and regulatory authorities to ensure accurate taxation, smooth customs clearance, and compliance with international trade laws. 

How to Get an HS Code for a Product 

HS Code Assessment: What It Is & Why It Matters

With the vast number of products involved in international trade, memorizing every HS Code is nearly impossible. To avoid misclassification and labeling errors, businesses and traders can use several methods to check the correct HS codes for their products. 

Check the HS Code on the Official INSW Website 

Most countries provide an official government website to access Harmonized System Code information. In Indonesia, this service is managed by the Indonesia National Single Window (INSW), which operates under the customs authority and the Ministry of Trade. 

  • Visit the INSW website at https://insw.go.id/intr
  • On the homepage, locate the search bar labeled “Search for Commodity Details by HS Code or HS Description.” 
  • Enter the name of the product you wish to classify. If unsure of the category, type a general term (e.g., “apple”) and click search. 
  • The system will display multiple classification options for your search. For example, “apple” may generate different HS Codes for fresh apples, apple juice, fermented apple products, etc. 
  • Identify the most accurate Harmonized System Code that best matches your product’s description. 

Check the HS Code Through the BTKI Customs Tariff System 

In addition to the INSW website, traders can verify Harmonized System Code through the Indonesian Customs Tariff Book (BTKI) provided by Bea Cukai (Indonesia Customs). 

  • Visit the BTKI website at https://www.beacukai.go.id/   
  • Browse the BTKI 2022 tariff book, which categorizes goods based on general product classifications. 
  • Look for the relevant category, such as meat, seafood, live animals, coffee, etc. 
  • Click on a category to view its detailed classifications. Then, click on the appropriate HS Code for each subcategory. 

Use An HS Code Guidebook or Manual 

Printed Harmonized System Code books or trade classification manuals are also available for those who prefer physical reference materials. These books are commonly found at: 

  • Customs offices 
  • Trade libraries 
  • Official trade organizations 
  • Authorized publishers 

Although this method is less convenient than online searches, printed HS Code guides remain valuable for verification and physical reference, particularly for businesses that frequently deal with customs classifications. 

Consult A Trade Expert or Customs Consultant 

If determining the correct HS Code is still challenging, consulting with a trade expert or customs consultant can be a practical solution. These professionals have specialized knowledge in product classification and customs regulations, making them highly reliable for ensuring accurate HS Code identification. 

Understanding HS Code Assessment 

Before importing or exporting goods, businesses must accurately determine the correct HS Code for their products. This classification is crucial in calculating costs, mainly import duty tariffs, and ensuring that all required documentation is prepared correctly.  

Additionally, the HS Code helps businesses comply with prohibition and restriction policies set by customs authorities. 

Why is HS Code Accuracy Important? 

Using the wrong HS Code can result in serious complications, including: 

  • Unexpected Additional Charges: Customs authorities may impose extra duties, fines, or penalties for misclassified goods. 
  • Import or Export Delays: Incorrect classification can lead to shipment holds or rejections, delaying business operations. 
  • Regulatory Compliance Issues: Certain goods may be subject to import/export restrictions, and incorrect HS Codes can cause legal or compliance problems. 

By ensuring that products are assigned the correct HS Code, businesses can streamline trade processes, avoid unnecessary costs, and prevent customs-related issues. 

How HS Code Assessment Services Work 

HS Code assessment services help businesses ensure their products are classified correctly to meet customs regulations and avoid trade issues. The process typically includes: 

Technical Analysis of Goods 

  • Reviewing the product’s specifications, materials, and intended use. 

HS Code Verification and Compliance Check 

  • Assessing the provided HS Code against the latest customs tariff classifications. 
  • Verifying compliance with the Indonesian Customs Tariff Book (BTKI 2022) or other relevant tariff systems. 
  • Checking if the product qualifies for preferential tariffs under Free Trade Agreements (FTA). 

HS Code Report and Recommendations 

  • Providing a summary of the assessment, classification, and import requirements from a customs perspective. 

By ensuring accurate classification, businesses can avoid penalties, optimize duty costs, and facilitate smooth import/export transactions. 

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Ensure Smooth Trade Operations with InCorp 

Accurately determining the HS Code for your products is essential in international trade. InCorp Indonesia (an Ascentium Company) can assist you in identifying the correct HS Code, ensuring compliance with the Indonesian Customs Tariff Book, and advising on import/export regulations.  

Whether you need guidance on tariff classifications, trade compliance, or preferential duties under FTAs, we provide accurate HS Code assessments to help you avoid costly errors. Additionally, we offer complete import and export assistance: 

Ensure your products are classified correctly by filling out the form below. 

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

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Frequent Asked Questions

You can transfer the license as long as your current local distributor agrees to change the product license holder. The procedure will be different for each product category. We can only recommend you try to prevent these issues by setting cooperation with a trustworthy partner from the beginning

Not completely. You can leverage a service called Importer of Record or Undername Importer to assist you in importing products into Indonesia.

Before you can distribute your products in Indonesia, you will have to register your product with the BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). Only an Indonesian legal entity can register the product. If you decide to distribute your product via a local distributor, they will register the product under their entity in Indonesia and become the product license holder. Cekindo can act as your local distributor and register the product under its name.

Yes, you can import your product through importer of record services which enables companies to import products into a country through an import partner.