The Harmonized Commodity Description and Coding System, popularly known as Harmonized System or HS, is a multipurpose international goods nomenclature used as the basis for Customs tariffs and for the compilation international trade statistics all over the world. The HS was developed by the World Customs Organization (WCO) and was implemented on 1 January 1988 by an international Convention that was also known as HS Convention, which came into force on 1 January 1988. The HS coding system is maintaining by the WCO through the Harmonized System Committee. Globally 5,000 commodity groups identified in a six digit code, first 2 digit define for chapter level, 4 digit define for Sub-Heading, 6 digit define for Product, further 8 digit and 10 digit level are specify for managed the every country there own commodities.
The Harmonized system is used by more than 177 countries and economies as a basis for their Customs tariffs and used for collection of foreign trade statistics data. Over the world 98% of the merchandise in Foreign Trade is classified in terms of the HS Code. the Harmonized system (HS) contributes to the harmonization of Customs and trade procedures, the non-documentary trade data interchange in connection with these procedures, thus reducing the costs related to international trade. It is using by governments, international organizations and private sector for many other purposes such as internal taxes, trade policies making and formulation, monitoring of trading goods, rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation of national accounts and economic research and analysis of country trade.
The Chinese Customs adopted these harmonized system. There are defined in HS 21 Sections, 99 Chapters and Above the 2000 sub-Headings, which are globally used in export and import.