The USPS has a new mandate for foreign-bound shipments that, while helpful to tariff collections in destination countries, is not directly related to this year’s tumultuous tariff changes: As of September 1st, shippers must include at minimum the 6-digit WCO Harmonized System tariff codes on the customs declaration for each article contained in packages.
The change reflects revisions to the regulations of the Universal Postal Convention crafted prior to 2025 – which means other Postal Services around the world will likewise have to mandate HS codes for packages that are destined for other countries, including the US.
Sellers are likely familiar already with “HS Codes,” or Harmonized System codes, since many marketplaces and shipping services already require shippers to add them to their customs forms when purchasing international shipping labels
But why are HS Codes necessary? The US Department of Commerce International Trade Administration explains that the codes are used by over 200 countries to calculate duties and taxes at borders and to collect trade statistics:
“To better organize and understand global goods trade, the World Customs Organization (WCO) developed and administers an international product called the Harmonized System (HS). The HS is a standardized numerical method of classifying traded products. Under the HS, traded goods are classified to a standardized 6-digit level. Applied by more than 200 countries and economies worldwide, the HS is used, among other purposes, to identify products to assess duties and taxes at borders, and to collect trade statistics.”
Stamps.com published a helpful guide to the mandate last week. It said USPS will not block label creation if the HS code is missing, but customs agencies in destination countries may hold or return your shipments. “Bottom line: Failing to include the HS code risks delivery delays, frustrated customers, and more manual work.”
Pirate Ship, a postage service popular with low-volume sellers and which requires Harmonization Codes on all international shipments, has a guide that includes a link sellers can use to find codes for their products.
eBay has a help page for sellers looking for information about international shipping. But it tells sellers that using its eBay International Shipping program (EIS) will relieve them of regulatory burdens, explaining on its EIS help page the following:
“We’ll let you know when an item sells to an international buyer and provide you with the domestic shipping hub address. All you need to do is send your sold items to the domestic shipping hub before the estimated delivery date, and the international shipping and customs process will be managed for you.”
Etsy also advises sellers on international shipments on this help page.
Tax-compliance service Avalara advised shippers to keep up-to-date to make sure they are using current codes for their products. In the 2022 post, it cited an example of a client that was paying 7.9% duty for a product instead of the 2.9% they were obliged to pay. “In this example, it was a product that is widely produced, however as they were manufacturing it with sustainable materials, it was subject to a more favourable rate.”