29/07/2026
π¦ HS CODE AND SKU: BOTH ARE "PRODUCT CODES", BUT ONLY ONE IS USED FOR CUSTOMS DECLARATIONS
Many businesses that are new to import and export often confuse HS Codes with SKUs, leading to inaccurate declarations or incorrect information being exchanged with business partners.
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In reality, these are two completely different types of codes.
π HS Code (Harmonized System Code)
β A product classification code based on the international Harmonized System.
β Used for customs declarations, determining applicable tariff rates, and identifying management policies for specific products.
β Every product involved in import or export activities must have the correct HS Code determined in accordance with applicable regulations.
π SKU (Stock Keeping Unit)
β A code created by a business to manage products in its inventory.
β Helps businesses track inventory, classify products, manage sales, and operate internal processes.
β Each business can create its own SKU system, as there is no universal standard.
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β οΈ Key point to remember:
Businesses can change their SKUs at any time to suit their internal management systems. However, HS Codes cannot be arbitrarily assigned and must be correctly determined based on the product's characteristics, composition, functions, and applicable classification regulations.
π‘ SKU helps businesses manage their products. HS Codes help ensure that goods are properly declared and cleared through customs in compliance with regulations. Understanding the difference between these two types of codes can help businesses minimize errors in import-export activities and warehouse management.