HS Code Changes in 2025

1. Understanding HS Code Changes in 2025: A Guide for Importers

The Harmonized Commodity Description and Coding System, commonly known as the Harmonized System (HS), serves as the backbone of international trade classification. For importers worldwide, HS codes determine everything from duty rates and regulatory requirements to statistical tracking and trade compliance obligations. However, the HS is not a static system – it undergoes regular revisions that can significantly impact import operations, costs, and compliance requirements.

Understanding how HS code changes affect import operations is crucial for maintaining compliance, managing costs, and avoiding costly mistakes. This comprehensive guide explores what importers need to know about HS code changes in 2025, their implications, and best practices for importers to manage these transitions effectively.

1.1. What Is HS Code?

If you're in the import–export business, you've probably come across the term HS Code more times than you can count. HS stands for Harmonized System, and it's essentially the global language of trade. Think of it as a standardized numerical system used to classify every product that crosses borders.

The HS Code system is developed and maintained by the World Customs Organization (WCO) and updated every five years to reflect shifts in global trade. At its core, the system uses a 6-digit code that is the same worldwide. These six digits form the foundation, and individual countries can expand them into longer codes for more detailed classification.

For example, in the United States, exporters use a 10-digit Schedule B code (managed by the U.S. Census Bureau), while importers use a 10-digit HTS (Harmonized Tariff Schedule) code (managed by the USITC), or Vietnam uses 8 digits for its HS Code system. This means the first six digits remain consistent globally, but the last four digits vary depending on the country's requirements.

So, when someone asks "what is HS Code and why does it matter?", the answer is straightforward: it's the backbone of customs classification. It ensures that duties, tariffs, and trade statistics are applied consistently, reducing confusion in global supply chains.

1.2. What Is HS Tariff Code?

Once you understand the basics of HS Codes, the next step is knowing how they connect to tariffs.

An HS tariff code is essentially a country-specific extension of the Harmonized System. The global HS framework stops at six digits, but each country builds on it by adding more digits to reflect its own duties, taxes, and trade regulations.

For example:

• In the United States, the Harmonized Tariff Schedule (HTS) extends the HS code to 10 digits and determines the precise duty rates applied to imports.
• In the European Union, the Combined Nomenclature (CN) is used, which also expands beyond the six-digit HS base to set EU-wide tariff rules.

This is the main difference between an HS code and an HS tariff code: the first six digits are consistent worldwide, while the additional digits vary depending on national requirements.

Those extra digits aren't just detail for detail's sake, they dictate the exact duties you'll pay, what exemptions apply, and whether any import restrictions are in place.

1.3. How HS Code Works

At its simplest, the HS Code system works like a universal product "barcode" for international trade. Every item traded across borders is assigned a code that ensures customs authorities, traders, and logistics providers are all speaking the same language when describing goods.

The structure looks like this:

• First six digits: These are standardized worldwide under the Harmonized System (HS). For example, "8703.21" will always point to a specific type of passenger motor vehicle, no matter where it's shipped.
• Additional digits: Beyond those six digits, countries can add their own layers of detail. This allows governments to classify goods more specifically for tariff, quota, or statistical purposes.

Take the United States as an example:

• Exporters use a 10-digit Schedule B code, managed by the U.S. Census Bureau.
• Importers use a 10-digit Harmonized Tariff Schedule (HTS) code, overseen by the USITC.

Even though the last four digits may differ depending on whether it's for imports or exports, the first six digits remain identical worldwide. This consistency makes it possible to apply duties and track trade data uniformly across markets.

The extra digits matter because they provide the fine details countries need.

Beyond six digits, authorities can split categories into subcategories, for instance, distinguishing between types of electronics, grades of raw materials, or variations of the same product. This way, governments can apply different tariff rates, monitor sensitive goods, or collect more precise trade statistics.

2. What You Need To Know About The HS Code Changes In 2025

Every five years, the World Customs Organization (WCO) revises the Harmonized System to keep pace with evolving trade patterns, new technologies, and regulatory needs. The latest round of HS code changes takes effect on July 1, 2025, and they could have a direct impact on how your products are classified and cleared at customs.

So, what do these changes mean for your business?

• Review and update your HS codes: Products you’ve been shipping under one classification may now fall under a revised or newly created code.
• Adjust product classifications: Align your product descriptions and documentation with the updated structure to remain compliant.
• Avoid costly risks: Using outdated codes can lead to incorrect duty payments, shipment delays, or even customs audits.

These updates are part of a broader response to today’s trade challenges. Customs authorities are under pressure to curb tariff avoidance and misclassification, especially with the surge of eCommerce shipments where vague descriptions like “gift” or just a brand name are no longer acceptable.

By tightening classifications, the WCO and local customs offices aim to ensure that duties, restrictions, and trade policies are applied fairly and consistently worldwide.

In an increasingly complex global trade environment, where tariffs shift quickly and restrictions vary by market, accurate classification matters more than ever. Staying ahead of the 2025 HS code changes is not only about compliance but also about keeping your supply chain moving without disruptions.

2.1. The Global HS Code Changes In 2025

2.1.1. The HS Nomenclature 2022 Edition

The HS 2022 Edition by WCO, which came into force on 1 January 2022, marked the seventh edition of the Harmonized System. Approved in 2019 and implemented across 211 economies, this update introduced 351 amendment sets, making it one of the most comprehensive overhauls in recent years. The goal was clear: to modernize the system, adapt to new product streams, and address environmental, health, and security concerns.

Some of the most notable updates included:

• E-waste classification: For the first time, electrical and electronic waste was given visibility in the HS, enabling better monitoring under the Basel Convention.
• Novel tobacco and nicotine products: Specific provisions were added to reflect the growing trade and regulatory challenges around these products.
• Unmanned Aerial Vehicles (UAVs): Drones gained their own subheadings, making classification simpler and trade statistics more transparent.
• Smartphones and display modules: Smartphones were recognized under their own subheading, while flat panel display modules were treated as standalone products, removing classification ambiguity.
• Medical goods: Updates included simplified classification for diagnostic kits, new provisions for clinical trial kits and placebos, as well as recognition of cell cultures and cell therapies. These changes aimed to facilitate cross-border health research and accelerate outbreak response.
• Security and controlled substances: Dual-use items, radioactive materials, toxins, and equipment tied to terrorism concerns were given their own subheadings. Additional chemicals controlled under international conventions (CWC, Rotterdam, Stockholm, Kigali Amendment) were also added.

Beyond new categories, the 2022 edition also focused on clarification and alignment, ensuring consistency across languages and reducing misinterpretations. Customs administrations worldwide had to reconfigure tariff schedules, update correlation tables, and train their staff to manage these changes.

2.1.2. The HS Code Changes 2025: What Global Importers Need To Be Aware Of

The HS code changes taking effect on July 1, 2025 represent a coordinated global effort by the WCO to address pressing issues in trade and customs classification. These revisions are designed not only to update technical details but also to reflect broader policy priorities in sustainability, technology, health, and digital trade.

For global importers, exporters, and logistics providers, the implications extend well beyond compliance, shaping costs, clearance speed, and even market opportunities.

HS codes are changing. Compliance is getting tougher. The difference between smooth clearance and shipment delays often comes down to a single number.

That's why leading exporters, importers, and logistics companies trust yTrade. We cover all sections of the Harmonized System, providing granular data up to the 6-digit level and beyond where available.

See how yTrade simplifies HS Code coverage today

Sustainability Takes the Spotlight

Environmental and climate-related considerations now sit at the heart of trade policy, and the new HS codes reflect this reality. Dedicated classifications will be introduced for products such as:

• Solar panels and renewable energy equipment
• Electric vehicles and related components
• Lithium batteries
• Biodegradable and eco-friendly materials

By carving out separate categories for these goods, customs authorities can more effectively monitor environmental trade flows and enforce climate-related measures like the EU's Carbon Border Adjustment Mechanism.

For companies, this means both opportunity and responsibility: exporters of sustainable products may gain preferential treatment or incentives, while importers must ensure their product descriptions and codes are aligned with stricter requirements to avoid costly disputes.

Advancements in Technology

Innovation in electronics and digital devices has consistently outpaced the existing HS structure, often creating ambiguity in tariff applications. The 2025 changes provide sharper classifications for AI-powered devices, wearable technologies such as smartwatches, and next-generation consumer electronics. This brings greater clarity but also raises compliance expectations.

Multifunctional products, those that combine features across categories, will be under closer scrutiny. For example, a smartwatch that doubles as a health device and a communication tool will now require precise classification rather than reliance on broad heading.

Importers and exporters in the tech sector must therefore revisit product databases, ensuring that every device is coded accurately to prevent duty miscalculations, delays, or penalties.

Health and Safety Priorities

The global pandemic exposed the weaknesses of vague classifications in medical supply chains, where delays in identifying PPE, vaccines, and diagnostic kits cost valuable time.

In response, HS 2025 introduces more detailed codes for medical goods, making it easier for customs to process shipments quickly and consistently.

For companies trading in pharmaceuticals, PPE, or clinical trial kits, this change reduces ambiguity but also heightens scrutiny. Customs authorities are expected to demand more precise documentation, meaning exporters and logistics providers must ensure their paperwork fully matches the new codes.

Ultimately, these changes are designed to support faster and safer cross-border movement of essential goods while improving governments' ability to enforce public health regulations.

Digital Trade Adjustments

The rapid growth of eCommerce has overwhelmed customs systems, with millions of small parcels crossing borders daily. Many of these shipments are still declared with vague terms such as "gift," "merchandise," or simply a brand name, creating compliance blind spots.

HS 2025 takes a step toward addressing this issue by refining classifications for digital goods, including eBooks, software, and digital media, and by pressing for more transparent reporting in small-parcel trade.

For logistics companies, the shift will require system upgrades capable of handling accurate, product-level details at scale.

Importers must also abandon generic labeling, as customs authorities will now expect clear, specific descriptions tied to the appropriate HS code. This is especially critical given the increasing focus on tariff avoidance in small-package trade.

3. Conclusion

The upcoming HS code changes in 2025 underline how critical accurate classification has become for global trade. From sustainability to technology and health, customs authorities worldwide are tightening requirements, and businesses that fail to adapt to risk costly disruptions.

As international trade continues to evolve and regulatory requirements become increasingly complex, the importance of effective HS code management will only grow. Importers who invest in understanding and managing these changes will maintain competitive advantages while ensuring compliance with evolving international trade requirements.

With yTrade's complete HS Codes and customs data coverage, you can stay ahead of these changes. We allow access to multi-language HS codes, duty calculators, and cross-border customs data instantly to keep your supply chain compliant and competitive.

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