Beyond the product code: Understanding HS Codes in Maersk Spot (+ FAQs) (2024)

The world of international trade thrives on a common language — HS code or HS tariff number.

In this article, we delve into the world of these codes, explaining what they are, why they’re important, their role in Spot shipping, and how they impact your next import/export. We also address how you can add/edit HS codes and any FAQs you may have about the topic.

What is HS tariff number or HS code?

Harmonized System codes, or HS codes, are a globally standardized system for classifying and identifying traded imported/exported goods. Imagine them as a universal language for products, ensuring everyone—from customs officials to international traders—understands exactly what’s being shipped without opening the container/parcel.

Also called HS tariff number, these codes are typically six (6) digits, with each digit progressively narrowing down the product category.

For example, the HS code for unroasted coffee beans starts with ‘09’ for “coffee, tea, and spices”, then ‘0901’ to narrow it down to coffee, and finally, 0901.11 to specify that it is unroasted. Some countries may add 2 more digits (0901.11.00) for further differentiation (like whole beans vs. ground coffee). Similarly, for roasted coffee beans, the HS code is 0901.21.

Beyond the product code: Understanding HS Codes in Maersk Spot (+ FAQs) (1)

Why should you use the HS Code when shipping?

HS codes play a crucial role in international trade by:

  • Facilitating customs clearance: These codes help customs authorities efficiently identify products and assess duties and taxes accurately.
  • Improving trade statistics: They allow countries to track import and export data for various goods, aiding trade analysis and policy formation.
  • Streamlining logistics: HS codes enable consistent classification throughout the supply chain, reducing delays and confusion.
  • Managing associated risks: These codes can help identify potential restrictions or licensing requirements for specific products and navigate any risk factors.

You can submit the HS codes for your Maersk Spot shipment easily via maersk.com:

  1. When adding shipping instructions (SIs)
    • Login to your Maersk account, and you’ll land on your profile hub.
    • Navigate to the “Manage” menu on the left, go to the ‘Export Overview’ tab, and select the concerned Bill of Lading (B/L).
    • Under the “Tasks” tool, scroll down and select the ‘Submit Shipping Instructions’.
    • On the SI dashboard, you’ll see multiple tabs associated with different parts of your shipment. For HS code, navigate to “Cargo & VGM”.

    Beyond the product code: Understanding HS Codes in Maersk Spot (+ FAQs) (2)
    • Input the cargo details, such as description, type of goods, and respective HS codes.
    • If required, you can add other relevant shipping instructions (SIs) related to documents, parties, and payers, among other things.
    • Review the details you’ve entered. If everything looks okay, click ‘Submit’.

Several resources are available to help you find the right HS code for your freight:

  • Government customs websites: Most countries have online HS code search tools on their customs agency websites, like the US Customs and Border Protection (CBP). These tools allow you to search by keyword, product description, or material.
  • International trade associations: The International Trade Administration (ITA) website offers resources and guides on HS codes for US businesses. They also provide information on obtaining a binding ruling from CBP if the classification is unclear.

Did you know we offer HS classification along with Maersk Customs Service? Our specialized team of experts can help you navigate tariff codes, taxes, and duties for all imports and exports.

While it’s always best to identify the correct HS code before finalizing your Maersk Spot booking, mistakes can happen.

Entering an incorrect HS code for your shipment can lead to several consequences:

  • Customs hold-up: Maersk relies on the HS code you provide to facilitate the process. However, if it’s inaccurate, customs officials will need to investigate and potentially re-classify the goods. This can lead to significant delays for your shipment.
  • Additional charges: The reclassification process by customs might result in unexpected charges. If the correct HS code carries a higher duty or tax rate than the one you declared, you’ll be responsible for paying the difference to Maersk or directly to customs.
  • Potential for fines: In severe cases, if customs suspect deliberate misclassification to avoid duties, you could face fines or penalties. Maersk itself might not be involved in imposing these fines, but they can still significantly impact your overall landed cost.
  • Shipment seizure: In extreme cases, customs might seize your shipment if they suspect deliberate misclassification or if the product violates import/export regulations associated with the correct HS code.

Note: Remember that Maersk relies on the information you provide during booking. If the HS code is wrong and leads to delays or extra charges, Maersk would not be held liable.

The ability to change the HS code on a Maersk Spot booking depends on the stage of the booking process, the status of the shipment, and Maersk’s specific policies.

Also, amendments made after receiving a booking confirmation may require re-confirming available vessel space and Maersk’s approval. Changing shipment details means accepting any new applicable charges.

After booking confirmation and submitting SIs:

We offer a short window after submitting SIs to make changes in the HS code. This timeframe is likely limited to ensure smooth processing and avoid shipment delays. Here’s how you can change the HS code for your Maersk Spot shipment:

  • Login to your Maersk account, and you’ll land on your profile hub dashboard.
  • In the top-right corner, you’ll see a box where you can input the B/L or container number. Enter the associated B/L or container number and click “View details”.

Beyond the product code: Understanding HS Codes in Maersk Spot (+ FAQs) (3)

  • On the SI portal, select “Amend Verify Copy” or “Amend Bill of Lading”.
  • Navigate to the “Cargo & VGM” section to change your HS Code. Input the correct cargo details and respective HS tariff codes.
  • Review the changes and click ‘Submit’.

Note: When amending your shipping instructions, your previous data for shipping instructions will be pre-filled. So, you don’t need to refill each SI for your booking. You can simply navigate to the section you need to change and make the relevant changes.

Also: The SI amendment feature is only available to customers online. Maersk representatives cannot make any changes to your bookings on your behalf. In case of any questions or concerns, you can use our 24/7 live chat feature.

After vessel transit and beyond the edit window:

If you miss the edit window, your best course of action is to contact Maersk customer service as soon as possible. Explain the situation and request a change to the HS code.

We might be able to accommodate the change in the HS code depending on the shipment status and our internal procedures. However, do note:

  • Time is crucial. The sooner you contact Maersk about the HS code change, the better your chance of getting it updated. Delays can limit your options.
  • There may be added fees. Be prepared for amendment fees associated with changing the HS code after booking confirmation.
  • It may impact your booking. Depending on how far along the booking process is, changing the HS code might affect your confirmed price or even the availability of space on the vessel. Maersk will inform you of any potential changes to your booking.

HS tariff codes and Spot shipping: FAQs

1. Is using HS code mandatory for my Spot shipment?

Yes, as per the latest advisory, HS codes are mandatory for all global cargo shipped via Maersk.

2. Can I leave the HS code field blank in the shipping instructions?

When submitting your shipping instructions, you must include the HS code for your commodity/container.

3. What should I do if I’m unsure about the HS code for my Maersk Spot shipment?

Don’t guess! Utilize the resources mentioned earlier (government websites, industry associations) for accurate HS classification. It’s best to contact Maersk customer service for any questions or concerns.

4. Can I contact Maersk customer service for assistance with HS codes?

Maersk customer service representatives might be able to offer some general guidance on HS codes, but they won’t be able to classify your specific product definitively.

5. What happens if the HS Code is incomplete?

If you have input missing or incomplete 6-digit HS code in your shipping instructions, it will not be processed. You’ll receive an email asking for complete information before we can prepare the Bill of Lading.

6. What happens if I enter an incorrect HS code during my Maersk Spot booking?

While Maersk might not penalize you during booking, customs will likely hold your shipment for re-classification, potentially leading to delays and additional charges.

7. How can an incorrect HS code affect the cost of my Maersk Spot shipment?

If the correct HS code carries a higher duty or tax rate, you’ll be responsible for paying the difference at customs, which will impact your landed cost.

8. Can I change the HS code on my existing Spot booking?

Possibly. Depending on your shipment status, you may be able to change the HS code on your existing booking. Learn more here.

9. Is it better to change the HS code, or cancel and rebook my Spot shipment?

The best course depends on the situation. Changing the HS code might be faster if allowed, but rebooking could offer a more accurate process if the initial booking window has passed. Maersk will advise you of any booking changes or price adjustments accordingly.

Still have questions? We’re here for you. Simply log into your Maersk account to chat with our online customs service team.

Beyond the product code: Understanding HS Codes in Maersk Spot (+ FAQs) (2024)

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