This article explains what an HS Code is, why it matters whether you use Swap Global or Returns, and where to manage it depending on which Swap product you use.
What is an HS Code?
A Harmonized System (HS) Code is a standardised number that classifies a product for customs and duty purposes. Developed by the World Customs Organization (WCO) in 1988, it's now used by over 200 countries to apply the right tariffs and collect international trade statistics — so however your product crosses a border, an HS Code is what tells customs what it's looking at.
Why HS Codes matter for shipping with Swap Global
If you sell internationally with Swap Global, an accurate HS Code on every product is what lets customs calculate the right duty and clear your shipment without delay. Get it wrong, and you risk incorrect duty charges, customs delays, or your shipment being held or fined.
Compliance Hub (available to Swap Global merchants) manages this for you — it checks your catalogue's HS Codes, flags anything missing or likely incorrect, and syncs fixes to Shopify. See Understanding Compliance Hub and How to manage your compliance data in Compliance Hub for how that works day to day.
Why HS Codes matter for Returns customers
HS Codes aren't only a Swap Global concern. If you use Swap Returns and a customer ships an item back from another country, that return shipment still needs to clear customs — and an accurate HS Code on the product is part of what makes that possible. A missing or incorrect code on a returned item can cause the same delays or customs issues as it would on an outbound order, even if you don't have Compliance Hub.
If you're on Returns without Swap Global, you won't have Compliance Hub's automated checks, so it's worth keeping HS Codes accurate on your products directly in your e-commerce platform as part of your standard catalogue setup, using the same principles in this article.
How an HS Code is structured
An HS Code has six digits, each pair adding more detail:
The first two digits (chapter) describe the broad product category.
The next two (heading) narrow that down further.
The last two (sub-heading) give the most specific description of the goods.
Many countries, including the US, extend this to a 10-digit code for their own customs systems — the extra four digits are destination-specific and applied on top of the six-digit base. The WCO updates the underlying code system roughly every five years to reflect new products and changes in trade patterns, so a code that was correct a few years ago may no longer be the most accurate one.
Finding the right HS Code
Start with the product itself — its composition, function, and intended use all affect classification.
Check the WCO's HS code directory or your national customs authority's database for the closest match.
For anything ambiguous or high-value, it's worth confirming with a customs broker or trade compliance expert rather than guessing.
A couple of examples:
A smart watch typically falls under HS code 8517.62 (machines for the reception, conversion, transmission, or regeneration of voice, images, or data).
A basic moisturiser typically falls under HS code 3304.99.
Common misclassification risks
Similar-looking products, different codes — small differences in material or function can mean a different classification.
Bundles, kits, and sets — these often need a specific classification approach rather than using the code for a single component. See Guidelines for Classifying Bundles, Kits, and Sets.
Regional variants — the first six digits are internationally consistent, but countries can add extra digits, so a code correct for one destination isn't automatically correct for another.
Getting classification wrong isn't just a paperwork issue — it can mean the wrong duty is charged, shipments held at customs, or in more serious cases, fines.
Where to manage your HS Codes in Swap
Swap Global merchants with Compliance Hub: manage HS Codes in bulk, get Swap's suggested fixes, and let Swap apply the destination-specific digits automatically at checkout. See How to manage your compliance data in Compliance Hub.
Returns customers without Compliance Hub: set the HS Code directly on each product's variant in your e-commerce platform. Swap recommends the same approach as Compliance Hub — maintain the 6-digit base code, since the last four digits are destination-specific and get applied automatically.
Managing default HS codes and COO for Returns V2
If a product's HS code or country of origin (COO) isn't set in Shopify, you can configure fallback values in Swap so returns aren't blocked by missing customs data. This is especially useful if you frequently add new products or variants and don't always have this data in Shopify right away.
These are fallback values, not overrides — Swap only uses them when the equivalent value is missing from Shopify. If a product already has an HS code or COO set in Shopify, that value is used instead.
Where to configure this
Go to Settings → General.
Find the Commercial invoice configuration section.
These settings are pre-filled with your store's current configuration and are aligned with returns requirements — only change them if you're confident the new configuration is correct.
HS code for US returns
For items shipped back into the US, you can choose:
Always use this HS code (default) — applies one static HS code to every line item. Swap uses 98010026, the standard US customs classification for returned merchandise, so this option reflects the correct code for this scenario rather than a generic placeholder.
Use Shopify HS code — reads each product's own code from Shopify instead. Only choose this if your Shopify HS codes are full 10-digit HTS values; partial or incorrect codes here won't be caught automatically.
Fallback HS code and COO (all returns)
For returns to all other countries outside of the US:
Fallback HS code (optional) — used only if a product's Shopify HS code is missing.
Country of origin (optional) — used only if a product's Shopify COO is missing.
Note: these fallbacks are designed to fill in missing data, not to correct inaccurate data. Keeping accurate HS codes and COO in Shopify at the product level is still the most reliable way to avoid customs delays or duty miscalculation on returns — the fallback is a safety net, not a substitute.
Frequently asked questions
Do I need Compliance Hub to manage HS Codes?
No. Compliance Hub (Swap Global only) automates checking and fixing HS Codes across your catalogue, but any Swap merchant can set HS Codes directly on their products in their e-commerce platform without it.
How often do HS Codes change?
The WCO revises the HS code system roughly every five years. It's worth checking your classifications periodically rather than assuming a code set up years ago is still accurate. You can take a look at the latest edition (2022) and the forthcoming edition (2028) on the World Customs Organisation website.