How to obtain an HS Code to comply with regulations for each imported and exported product, including the documents that importers/exporters must complete, and to determine the amount of import duties and taxes payable to the government.
Definition of HS Code
The Harmonized System, commonly known as HS, is a systematically organized list of product classifications designed to facilitate searching, trade, transportation, and statistics—an improved version of previous classification systems. Currently, the classification of goods in Indonesia is based on the Harmonized System and is included in the tariff list known as the Indonesian Import Tariff Book (BTBMI).
The HS Code governs the classification of every imported and exported product, including the documents that must be completed by importers and exporters, and determines the amount of import duties and taxes payable to the government.
This international product classification aims to ensure that all countries share a common understanding of the types of goods they import or export. It also facilitates customs and excise operations, which serve as an extension of the government’s authority to monitor the movement of goods entering or leaving Indonesia.
In Indonesia, commodity classification was initially established in a tariff schedule—the Indonesian Import Tariff Book (BTBMI)—which consists of 10-digit codes. The first six digits are established by the World Customs Organization (WCO) and comprise 97 chapters that are internationally recognized.
The six-digit HS classification system can be expanded to include additional subcategories by each participating country. ASEAN itself has agreed to adopt the eight-digit ASEAN Harmonized Tariff Nomenclature (AHTN), which is a further development of the six-digit HS. As of March 1, 2017, HS codes in Indonesia follow the AHTN and use the eight-digit system.
Here’s how to find a product’s HS Code:
Method 1 for Obtaining an HS Code
- Go to the INSW (Indonesia National Single Window) portal at http://eservice.insw.go.id/.
- Click the INDONESIA NTR menu on the toolbar, then select HS CODE INFORMATION.
- Click on the “Options” section and select “BTBMI – Description in Indonesian.”
- Enter a word in the Indonesian keyword field, such as “apple.”
- Various types of HS codes containing “Apple” will appear.
- Find the required HS Code. Look for the eight-digit code.
- Scroll down to view the Import Duty, VAT, Income Tax, and Prohibitions or Restrictions (Lartas).
Method 2 for Obtaining an HS Code
- Log in to intrade.kemendag.go.id
- Select the "Tools" menu, then click "HS List."
- In the HS search field, enter the HS code if you already know the HS number of the item you’re looking for.
- If not, select the “Item Description (Indonesian)” menu.
- In the next field, enter the keyword you’re looking for, such as “apple.”
- Click the "View" menu, and you’ll see a list of HS codes containing items related to "Apple"; choose the one you’re looking for. The HS code is listed on the left.
How to Read HS Codes
The HS uses code numbers to classify goods. The code numbers include systematized descriptions of the goods. The HS numbering system is divided into chapters (2 digits), headings (4 digits), and subheadings (6 digits), with the following explanations:
For example, HS Code 0101.11.xx.xx is taken from BTBMI (10 digits)
01 01 11 xx xx
__ Chapter 1
_____ Header 01. 01
________ Subheading 0101.11
___________ Subtitle: ASEAN Harmonized Tariff Nomenclature (AHTN)
_______________ Tariff Schedule of the Indonesian Import Tariff Book (BTBMI)
- The category in which an item is classified is indicated by the first two digits of the number; the example above shows that the item is classified under Chapter 1.
- The next two digits of the number—or the first four digits—indicate the heading within the chapter mentioned above; in this example, the item is classified under heading 01.01.
- The first six digits indicate the subheading for each heading and chapter discussed. In the example above, the item is classified under subheading 0101.11.
- The first eight digits of the number are the heading taken from the AHTN text.
- The ten-digit number indicates the national tariff heading taken from the BTBMI; this tariff heading specifies the amount of duties (import duties, VAT, luxury goods tax, or excise tax) and any applicable trade regulations.
Source: Indonesia.go.id.