HSN

Definition : Harmonized System Nomenclature
Category : Business » Business Terms
Country/Region : Worldwide Worldwide
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Initialism

What does HSN mean?

Harmonized Commodity Description and Coding System, also known as the Harmonized System Nomenclature (HSN) or Harmonized System (HS), is an internationally adopted commodity description and coding system developed for the classification of goods for taxation purpose. It was developed by the World Customs Organization (WCO), an intergovernmental organization established to improve the efficiency and effectiveness of customs administrations worldwide. The HS code consists of 6-digits. In the 6-digit HS code, the first two digits give the chapter number, the next two digits give the heading number, and the last two digits give the sub-heading number.

Note:
In some countries, the HSN code beyond 6 digits is also allowed. For example, India uses an 8-digit HSN Code. The additional digits added to the 6-digits HSN code are used to subclassify the HSN code on a more detailed level.

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