HS Code (Harmonized System Code) is the goods classification code under the globally harmonized system issued by the World Customs Organization (WCO). Each product has a unique HS code, consisting of 6-8 or 10 digits. An incorrect HS Code is one of the most common errors in customs declaration.
What is HS Code?
HS Code is the international goods classification code. The first 6 digits are international; the last 2 digits are country-specific. E.g., 1006.30.90.
How do you look up an HS Code accurately?
Look up on the import-export tariff schedule (customs.gov.vn) or VTM Logistics' HS Tool.
Is there a penalty for an incorrect HS Code?
Incorrect declaration with no tax impact: fine of 500,000-5,000,000 VND. Incorrect declaration resulting in a tax shortfall: fine of 10-20% of the tax shortfall.
When do HS Codes change?
WCO updates every 5 years. Countries may change their tariff schedules annually.
What should you keep in mind when looking up an HS Code for the first time?
Read the description in the Nomenclature and the Chapter/Section Notes. Complex goods require the General Rules of Interpretation.
Penalties for an incorrect HS code or tax rate must be assessed under Decree 169/2026/ND-CP, effective from 1 July 2026. The outcome depends on the conduct, tax consequences, party involved and case records. There is no single percentage of cargo value that applies to every error.
Vietnam HS Code consists of 8 digits:
Understand the goods clearly: name, material, use, operating principle, and composition. The same product can have multiple different HS codes if the material or use differs.
Each chapter in the HS Code Nomenclature has its own notes — specifying which goods fall under that chapter and which are excluded. Ignoring chapter notes is the leading cause of incorrect HS Codes.
6 general interpretative rules help determine the code when goods could fall under multiple chapters. Rule 1 (by description), Rule 2 (incomplete goods), Rule 3 (classification of goods made of multiple materials)...
After finding the suspected code, check the Tariff to confirm the appropriate duty rate. If the duty rate seems unusual (too low or too high compared with expectations), the code should be reviewed again.
Wrong HS codes are the most costly mistake in import-export — fines can be up to 20% of the shipment value. A product may have 2-3 different HS codes depending on the classification method. VTM Logistics provides free HS code lookup for customers to ensure accuracy.
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These sources explain the rules discussed above. Check the current requirements for your shipment; examples on this page do not replace the applicable regulations or contract terms.
