HS Code stands for Harmonized System of Commodity Description and Coding for Foreign Economic Activity. In other words, it is a classifier of goods.
Example:
6401100000 – WATERPROOF FOOTWEAR WITH OUTER SOLES AND UPPERS OF RUBBER OR PLASTICS, THE UPPER OF WHICH IS NEITHER FIXED TO THE SOLE NOR ASSEMBLED BY STITCHING, RIVETING, NAILING, SCREWING, OR SIMILAR PROCESSES, WITH A PROTECTIVE METAL TOE-CAP.
Structure of an HS Code: The code consists of 10 digits, where:
The first 2 digits – product group: indicate raw material, degree of processing, or application area.
The first 4 digits – product heading: more specific characteristics.
The first 6 digits – subheading: indicate usage, functionality, or operating principle.
The last 4 digits – specify technical characteristics.
Every product, regardless of where it is manufactured, must have an HS code.
Example of importing goods into Kazakhstan
The ideal situation is when you receive goods from a manufacturer (or seller) who is familiar with foreign trade regulations and has already ensured that HS codes are correctly assigned to the goods and stated in the invoice. In this case, customs clearance in Kazakhstan should not pose problems.
But what if the codes are missing or do not match the goods?
In this case, the HS code is determined by the customs broker. The complexity of classification depends on the product, its function, material, intended use, and purpose of import.
If codes are assigned incorrectly, this can lead to post-customs control issues, which in turn may result not only in additional customs payments but also fines, penalties, and other sanctions.
To determine the correct HS code, a broker must carefully review the invoice, technical description of the goods (including photos), and the purpose of import.
The purpose of import may be: resale, processing (use in production), own consumption, etc.
The declared purpose of import can affect the obligation to pay VAT and duties. Some goods are exempt from VAT at customs clearance if imported into Kazakhstan for personal use.
Why is technical description important?
“Why do we need a technical description if we already have the code and the product? Isn’t it obvious?”
We often hear such questions, and we explain every time: without detailed information about composition, application area, and technical features, it is impossible to determine the correct HS code and, more importantly, prove your classification decision to customs.
Even if the declaration is released, this does not guarantee correctness and does not exclude problems with post-customs audit.
Where to get a technical description and photos of the product?
Request it from the manufacturer (they always have full documentation)
Search online
Case from practice
For a long time, PU foam (mounting foam) was imported under HS code 3909310000 (duty 0%) according to its main chemical component – Amino-aldehyde resins, other: polymethylene polyphenyl isocyanate (crude MDI, polymeric MDI).
However, customs later made a classification decision not based on the chemical formula, but on its application area, assigning HS code 3214101001 (duty 5%) – Glaziers’ putty, resin cements, caulking compounds, and other mastics: polyurethane mounting foam in aerosol cans.
Additionally, a clarification was added to the code: “mounting foam in polyurethane and aerosol cans”, which was not present in the initial version. As a result, all importers bringing in this product were forced to pay an additional 5% duty.
Conclusion
If problems with HS codes arise, we strongly recommend consulting a customs broker and providing as much information as possible for accurate classification.
Remember: an incorrectly assigned HS code can lead to serious consequences.