When importing a shipment from China, the US, Europe, or other markets into Vietnam, one of the most critical pieces of information to determine before customs declaration is the HS Code.

The HS Code is not just a string of numbers appearing on documents.

Determining the HS code can directly impact:

• payable duties;

• import policies;

• specialized inspection requirements;

• C/O (Certificate of Origin);

• customs dossiers;

• and the overall cargo clearance process.

Therefore, if the HS code is determined incorrectly, a business may have to re-verify documents, duties, or import policies for the entire shipment.

So, what is an HS Code? How do you determine the correct HS code? Can you simply use the HS code provided by the foreign supplier? And how does the HS Code affect import duties?

Let's start with the most fundamental concepts.

1. What is an HS Code?

An HS Code is a standardized numerical system used to classify traded products in international commerce.

HS stands for Harmonized Commodity Description and Coding System.

Simply put:

The HS Code acts like the "customs identification number" for a type of good.

For example, when declaring a product as:

• "Industrial Machinery"

This information is usually insufficient to determine the exact applicable policies.

Additional details are needed:

• what kind of machine is this;

• what is its primary function;

• what principle does it operate on;

• which industry is it used in;

• how is it structured;

• what is its capacity;

• what are its main components.

Based on these actual characteristics, the goods are classified into an appropriate HS heading.

2. What is an HS Code Used For?

An HS Code is not merely a number filled out on a customs declaration form. In import-export operations, the HS code helps determine various related aspects of the cargo:​

Content	Significance
Import Duty	Determines the corresponding tax bracket for the goods
Export Duty	Checks whether the goods are subject to export duty
VAT	Value-Added Tax applicable to the goods
C/O	Verifies origin and potential preferential tax eligibility
Import Policy	Identifies whether goods are subject to special regulations
Specialized Inspection	Checks quality, quarantine, safety standards, etc., if applicable
Customs Declaration	Essential information on the declaration form
Trade Statistics	Classifies import and export commodities

Therefore:

An incorrect HS Code is not simply a mistake in a sequence of numbers. In some cases, improper classification can lead to re-auditing of taxes, C/Os, licenses, or other customs requirements.

3. How Many Digits Are in an HS Code?

At the international level, the HS system uses 6 basic digits.

The general structure can be understood as follows:

Level	Significance
First 2 digits	Chapter
First 4 digits	Heading
First 6 digits	International Subheading
Subsequent digits	Detailed classification according to national or regional systems

Example of a hypothetical code:

Calculate Duties → Prepare C/O → Calculate Import Costs → Prepare Customs Declaration

XXXX.XX.XX

Interpreted in order:

This is a point importers must pay special attention to. A supplier in China may provide an HS code for a product, but that does not mean the business should automatically use that exact code for declaration in Vietnam. The supplier's code is an important reference source, but it must be cross-checked against the actual product characteristics and the classification system applied in Vietnam.

4. How is the HS Code Understood in Vietnam?

Vietnam utilizes a commodity classification system based on the international HS and detailed through the national nomenclature for export and import goods.

Therefore, when importing goods into Vietnam, businesses should not simply look for an HS code that "sounds close to the product name."

More importantly, determine:

Which code best matches the actual nature of the goods?

For example, a product with the trade name:

• Smart Controller

This name alone cannot determine the exact HS code. Additional details are required:

• what device is being controlled;

• what is its primary function;

• what operating voltage does it use;

• does it contain a processor;

• does it operate independently or as part of another machine;

• what is its technical structure.

This is why HS classification must stem from the actual characteristics of the product, not just its commercial name.

5. Why is Determining the Correct HS Code Important?

Consider a common scenario:

A Vietnamese enterprise prepares to import equipment from China.

The supplier provides:

• Product Name: Smart Controller

• Origin: China

• HS Code: XXXXXX

The business uses this code to:

Calculate Duties → Prepare C/O → Calculate Import Costs → Prepare Customs Declaration

However, upon closely checking technical specifications and product literature, the actual product may possess characteristics fitting a different sub-group.

At that point, the enterprise may need to re-verify:

An issue at the initial product classification step can cascade into subsequent steps.

Therefore:

It is best to verify the HS Code before the goods are shipped, rather than waiting until the cargo arrives at a Vietnamese border gate or port.

6. How Does the HS Code Affect Import Duties?

One of the most common reasons businesses search for "What is an HS Code?" is to answer:

"How much tax do I have to pay when importing this product into Vietnam?"

To estimate the total cost of bringing goods to their destination, businesses generally need to review several data points, including:

• HS Code

• Country of Origin

• Customs Value

• Applicable Duty Rates

The HS Code helps identify the tariff line for the goods. However, note that:

An HS Code is not synonymous with a tax rate.

Under the same HS code, the actual tax rate may still depend on:

• product origin;

• applicable trade agreements;

• C/O;

• conditions for preferential treatment;

• product type;

• current policies.

7. What is the Relationship Between HS Code and C/O?

C/O (Certificate of Origin) is a document used to prove the origin of goods where applicable.

For example:

A business imports goods from China to Vietnam and wishes to evaluate eligibility for preferential tax rates under a trade agreement.

Instead of simply asking: "Is there a C/O or not?"

Examine the complete relationship:

Here, the rules of origin are criteria used to determine whether goods meet origin conditions under a trade agreement. If information across the C/O, HS Code, and other documents is inconsistent, the business may face additional checks or explanation requests.

Before shipping, cross-check information among:

8. How to Look Up HS Codes for Goods

A common mistake is simply typing the product name into a search engine and picking the first code that appears (e.g., "motor HS code", "plastic box HS code"). This method helps establish an initial direction, but lacks sufficient basis to conclude the exact code.

To determine the HS Code more accurately, follow these steps:

Step 1: Accurately Define What the Goods Are

Avoid relying solely on commercial names. For example, Smart Controller is a very broad term. Gather additional details:

• function;

• material;

• components or structure;

• operating principle;

• intended use;

• technical specifications;

• model;

• whether the product is used independently or as a component of another device.

The better you understand the product, the more accurate the HS code narrowing process will be.

9. Prepare Technical Documents Before Determining HS Codes

For machinery, components, or technical equipment, catalogues (product introduction and specification documents) are vital.

Recommended information checklist:

Information	Explanation
Product Name	Exact name of the goods
Product Image	Actual visual representation
Model	Product code
Function	What the product is used for
Material	What the product is made of
Composition/Structure	Structural build of the product
Intended Use	Circumstances/applications of use
Technical Specs	Voltage, capacity, dimensions, etc.
Catalogue	Product documentation
Manufacturer	Production entity
Supplier's HS Code	HS code currently used by the seller

For complex items, simply submitting "This is machine A, what is the HS code?" is rarely enough data for proper classification.

10. Determining Chapter – Heading – Subheading

Once you understand the product, begin narrowing down the code:

• Chapter: The broad classification level of goods.

• Heading: A more detailed classification level within the chapter.

• Subheading: A more detailed breakdown of the heading.

Visual flow:

Do not skip classification levels and merely search for a code with a description that "sounds like the product."

11. Read Explanatory Notes and Classification Rules

This is a step many beginners in import-export overlook. HS classification is not just a simple table of Product Name $\rightarrow$ Number.

The system includes general rules explaining commodity classification, alongside:

• section notes;

• chapter notes;

• heading descriptions;

• subheading descriptions;

• and related classification literature.

These rules help determine classification for scenarios such as:

• incomplete products;

• multi-material goods;

• multi-functional products;

• sets/kits;

• components;

• machinery combining multiple functions.

Therefore:

Do not choose an HS Code simply because its description closely resembles the product name.

12. 6 Essential Pieces of Information Before Asking "What is the HS Code for This Item?"

Before sending a product to customs departments or logistics providers for review, prepare answers to these 6 questions:

1. What precisely are the goods? (Beyond marketing or website names).

2. What material are the goods made of? (e.g., plastic, steel, aluminum, wood, fabric, rubber).

3. What is the primary function? (What work does the product actually perform?).

4. What is the operating principle? (Crucial for machinery and electrical equipment).

5. What is the intended purpose? (e.g., household, industrial production, medical, or construction).

6. Are there catalogues and technical specs available? (Crucial for verifying product nature).

13. Can You Use the HS Code Provided by a Chinese Supplier?

It can be used as a reference. However, do not automatically apply it without re-verification.

Suppliers may provide an HS Code used in the exporting country's declaration system. When imported into Vietnam, businesses must evaluate codes against:

• actual product characteristics;

• HS structural rules;

• applicable nomenclature in Vietnam;

• import policies;

• and related regulations.

A safer workflow:

Exercise particular caution with:

• machinery;

• components;

• electronic equipment;

• chemicals;

• multi-material products;

• multi-functional devices.

Unsure if your supplier's HS Code applies in Vietnam? Do not wait until the goods reach the border. Prepare product names, images, catalogues, technical specs, models, and supplier codes to review before confirming shipment. VICO Logistics can assist businesses in verifying cargo info and related requirements prior to import procedures.

14. Common Mistakes in Determining HS Codes

• Mistake 1: Relying solely on the product name. Commercial names ("Smart Device", "Control Unit", "Machine Parts") are too broad.

• Mistake 2: Copying the supplier's HS Code blindly. Use it as a reference, not a final conclusion for Vietnamese import declarations. Determine product nature → Find matching HS Code → Look up duty. Avoid working backward.

  Mistake 3: Choosing codes with lower taxes. The correct logic is:

• Mistake 4: Neglecting catalogues and technical specs. Especially vital for machinery and technical equipment where slight variations in function, voltage, or principles alter classification.

• Mistake 5: Document inconsistency. Mismatches between Commercial Invoices, Packing Lists, Bills of Lading, C/Os, and Customs Declarations cause delays.

15. What Happens If You Declare the Wrong HS Code?

When customs or businesses uncover improper classification, file reviews become necessary. Depending on the situation, this can involve:

• adjusting declaration info;

• re-evaluating duties;

• supplementing technical documents;

• clarifying product traits;

• reviewing C/Os;

• verifying management policies;

• or prolonging shipment processing time.

The goal is not "finding a code to finish the paperwork," but rather "identifying the code matching the product's nature with justifiable documentation."

16. Summary Checklist Before Confirming an HS Code

Content to Check	Status
Exact product name	✓
Utility/Function	✓
Material	✓
Composition/Structure	✓
Operating principle	✓
Model	✓
Catalogue	✓
Technical specifications	✓
Product image	✓
Supplier's HS Code	✓
Applicable HS Code in Vietnam	✓
Import duty	✓
VAT	✓
Import policy	✓
Specialized inspection (if any)	✓
C/O (if applicable)	✓
Consistent Invoice / Packing List / C/O	✓

If multiple items in this checklist are missing, supplement your data before concluding the HS code.

Frequently Asked Questions About HS Codes

• Are HS codes identical worldwide? The international HS system is standardized at the 6-digit level, but individual nations add digits for domestic taxation and management. Do not assume foreign detailed codes match Vietnamese codes identically.

• Can I find an HS code by product name alone? Names serve as a starting point, but complex goods require checking functions, materials, structure, and manuals.

• Can I use the HS code on the commercial invoice? Use it as reference, but verify against actual goods and Vietnamese systems.

• Can a product have multiple HS codes? Similar descriptions may appear, but further analysis is required to select the single most appropriate code.

• Does the HS code determine import duty entirely? It sets the tariff line, but actual rates depend on origin, trade agreements, C/O, and prevailing regulations.

Conclusion

The HS Code is a cornerstone of import operations, dictating policies, duties, and documentation requirements. Check early to ensure proactive compliance and smooth transit.

If you are importing goods from China to Vietnam and need guidance on HS codes, C/Os, or customs procedures, share your product name, images, catalogue, specs, and supplier code with VICO Logistics for a thorough pre-shipment review.