If you’ve ever dealt with international shipping or sourced materials from overseas, you’ve likely come across Harmonized System codes (or HS codes). These internationally recognised product codes are designed to provide a standardised process for the classification of goods, making it simpler to identify products internationally.

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What is an HS Code?

Harmonized System Codes (HS codes) are a numeric identifier to categorise exactly what type of traded goods you are shipping internationally.

HS codes are created and managed by the World Customs Organization (WCO), and the system is used by over 200 countries and economies worldwide. This creates a common point of reference for customs and government bodies, allowing regulations to be instilled based on HS categories. This therefore helps ensure compliance with international trade regulations, simplifies the importing and exporting process, and reduces custom delays.

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How Are HS Codes Structured?

HS codes typically contain six digits, though some countries expand them to 10 or more digits to reflect national classifications.

The structure follows this format:

• First 2 digits: Broad product category (e.g., Plastics, Paper, Textiles)
• Next 2 digits: More specific classification
• Final 2 digits: Further detail on the product’s nature or use

For example:
HS 3923.21 refers to plastic bags, sacks, and pouches used for packaging.

Each country may add additional digits for further country-specific details. In Australia for example, 2 additional digits are added to classify goods being exported from Australia. You can read more about Australian Harmonized Export Commodity Classification (AHECC) codes here.

How HS Codes Affect Tariffs and Duties

What Are Tariffs?

A tariff is a tax imposed on imported goods, usually expressed as a percentage of the product’s value or as a fixed amount per unit.

Tariffs serve several purposes:

• Generate revenue for governments
• Protect domestic industries from foreign competition
• Encourage or discourage certain types of imports (e.g., high tariffs on single-use plastics)

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How Are Tariffs Calculated?

The import tariff applied to an imported good depends on:

1. Its HS code
   Different packaging materials have different tariff classifications.
2. The country of origin
   Free trade agreements (FTAs) may lower or eliminate tariffs.
3. Trade policies
   Some countries impose higher tariffs on plastic-based materials due to environmental concerns.
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Example:

• Plastic bags (HS 3923.21) may have higher tariffs in countries discouraging plastic waste.
• Paper cartons (HS 4819.10) might qualify for lower or zero tariffs under green trade incentives.

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How to Estimate Tariffs Using HS Codes

To estimate tariffs for your packaging imports, follow these steps:

1. Identify the correct HS code for your product.
2. Search your country’s customs database. 
3. Apply any trade agreements if applicable (FTA benefits).
4. Factor in additional taxes (e.g., plastic levies, VAT).

Tip: Many governments provide HS code lookup tools and tariff calculators where you can enter an HS code to check the exact duty rates.

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HS Codes for Packaging Types & Their Tariff Implications

You can find the HS code for your product via your country's government website.

Different packaging materials are subject to different tariff rates. Below is a breakdown of common HS codes for packaging and how they may impact costs:

1. Plastic Packaging (Higher Tariffs in Some Regions)

HS 3923.21 – Plastic bags, sacks, and pouches
HS 3923.30 – Plastic bottles, containers, and closures
HS 3923.50 – Plastic caps, lids, and other closures

Tariff Considerations:

• Many countries impose higher tariffs on plastic packaging due to environmental concerns.
• Compostable plastics may still fall under traditional plastic classifications, leading to unexpected duties.

2. Paper Packaging (Lower Tariffs in Most Countries)

HS 4819.10 – Corrugated cartons, boxes
HS 4819.20 – Folding cartons and boxes (non-corrugated)
HS 4821.10 – Printed paper labels

Tariff Considerations:

• Paper packaging often qualifies for lower import tariffs due to its eco-friendly nature.
• May be eligible for additional tax exemptions or tariff reductions for recycled or FSC-certified paper.

3. Compostable & Biodegradable Packaging (Classification Challenges)

HS 3923.90 – Other plastic articles, including biodegradable and compostable plastics
HS 5608.90 – Plant fibre-based bags and nets (e.g., jute, hemp)

Tariff Considerations:

• Compostable plastics may still be classified as standard plastics, meaning higher tariffs in some regions.
• Some countries are introducing specific HS codes for compostable packaging, which could lead to future tariff reductions.

4. Glass and Metal Packaging (Varied Tariff Structures)

HS 7010.90 – Glass bottles and jars
HS 7310.10 – Steel and tin cans for food and beverages
HS 7612.90 – Aluminium cans and containers

Tariff Considerations:

• Glass and metal packaging generally have stable tariff rates, but heavyweight materials face higher freight costs.
• Recycled content can qualify for lower duties in some markets.

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How to Reduce Tariffs for Sustainable Packaging

Choose materials strategically – Paper and fibre based alternatives often incur lower tariffs than traditional plastics.

Leverage free trade agreements (FTAs) – Check if your country has trade deals that reduce duties on sustainable materials.

Classify compostable packaging correctly – Work with customs experts to ensure biodegradable materials are classified fairly.

Monitor policy changes – Some countries are adjusting tariffs based on environmental policies (e.g., EU plastic packaging levies).

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Final Thoughts

HS codes are a critical factor in global trade, affecting tariffs, compliance, and costs for packaging materials. By understanding how your packaging is classified, you can avoid customs delays, optimise costs, and ensure regulatory compliance.

At Grounded Packaging, we specialise in sustainable packaging solutions that align with international trade regulations. If you need assistance with HS codes, import duties, or choosing the most cost-effective and eco-friendly packaging, we’re here to help!