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Thousand, Bike Helmets, Worldwide, Glopal Global Ecommerce 3
hs-code-classification
Mar 25, 2025 1:13:38 PM2 min read

What Are HS Codes and Why They’re Critical for E-commerce Merchants

If your e-commerce brand ships internationally, there’s one piece of data that can make or break your customer experience: the HS code.

Short for Harmonized System code, an HS code is a globally standardized numerical classification used to identify traded products. Whether you’re shipping a leather handbag to the UK or a pair of sneakers to Japan, customs authorities around the world rely on HS codes to determine the duties, taxes, and documentation required at the border.

The Origins of the HS Code System

The Harmonized System was developed and is maintained by the World Customs Organization (WCO). Introduced in 1988, it was designed to simplify and harmonize the classification of goods across international borders. Today, over 200 countries use HS codes to regulate global trade, making it one of the most widely adopted systems in the world.

Each HS code is made up of at least six digits (with many countries adding extra digits for more specificity) and represents a specific category of goods. For example, the HS code for women’s cotton t-shirts is different from the code for men’s wool sweaters. That distinction might seem minor, but it can have major implications for duties, import restrictions, and compliance.

Why HS Codes Matter for E-commerce

For e-commerce merchants, accurate HS codes are essential. When you get them right, your parcels move smoothly across borders, taxes and duties are calculated correctly, and your customers receive their orders without delays or surprise fees.

But get them wrong? You risk:

  • Shipment delays as customs agents try to clarify or correct the product classification
  • Unexpected duties and taxes that either eat into your margins or frustrate your customer
  • Returned or rejected shipments that cost you both time and revenue

As cross-border shopping continues to rise, customer expectations are higher than ever. A surprise €50 customs fee or a week-long customs delay can turn a first-time buyer into a one-time buyer. To keep customers happy and loyal, you need a solution that ensures accuracy and reliability in international shipping.

The Challenge: Manual Classification Doesn’t Scale

The HS code system includes over 5,000 product categories—and the WCO updates them every five years, with many countries applying their own versions on top. For merchants with thousands of SKUs, manually assigning and maintaining accurate HS codes is not just time-consuming—it’s virtually impossible.

That’s why most fast-growing merchants turn to automation.

How Glopal Solves It

Glopal’s automated HS code classification is built for scale. Using advanced AI and product data, our system accurately classifies your entire catalog—ensuring each product is matched with the correct HS code in real time.

Our end-to-end cross-border solution also handles:

  • Accurate tax and duty calculations at checkout
  • Real-time customs documentation generation
  • Seamless integration with your existing store (no replatforming required)

By eliminating customs surprises and reducing cross-border friction, Glopal helps you deliver a world-class shopping experience—wherever your customers are.

The Result? Fewer Surprises. Faster Shipping. Happier Customers.

In international e-commerce, a smooth delivery experience isn’t just a logistics win—it’s a customer satisfaction win. Accurate HS codes ensure you avoid delays, prevent unexpected costs, and keep your customers coming back.