Harmonized Codes are internationally recognized codes to classify an item for tax purposes. Harmonized Codes (also referred to as Tariff Codes, TARIC, Customs Tariffs, Harmonized Tariff Codes, and Harmonized System Codes) expedite the shipping process for international orders. Once an order reaches an international border, a country's customs office uses these codes to identify the goods and then assess taxes, duties, and fees for what you are shipping.
Most destination countries use the Harmonized Code system, while a few countries require the description instead. It is best practice to include both the Harmonized Code and a detailed description when shipping internationally. While it is not always required, using Harmonized Codes for your international shipments will:
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Help your packages move through customs more quickly
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Help to ensure correct taxation on your exported products
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Help to minimize the chances of loss of your products
For a full list of Harmonization codes:
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🇺🇸 Go to the Harmonized Tariff Schedule page from the U.S. International Trade Commission.
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🇨🇦 Go to the Customs Tariff page from the Canada Border Services Agency.
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🇬🇧 Go to the Trade Tariff Service page from Gov.UK.
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🇦🇺 Go to the Current Tariff Classification page from the Australian Bureau of Statistics.
Australia uses an eight-digit code to classify goods for export. The first six digits align with the international classification and the last two digits are specific to Australian exports. The classifications are subject to change so you need to keep up-to-date. The Australian Harmonized Export Commodity Classification (AHECC) is usually updated every January and July. Classifications can be found on the ABS Website.
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🇳🇿 Go to the Customs Tariffs page from the New Zealand Customs Service.
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🇫🇷 🇩🇪 Go to the TARIC (Integrated Tariff of the European Union) page from the European Commission Taxation and Customs Union.
As of September 1, 2025, the U.S. Postal Service will require all international commercial shipments to include a six-digit Harmonized System (HS) code on customs declarations for each item, regardless of mail class.
The HS code system, created by the World Customs Organization, is used by customs authorities worldwide to classify goods and assess tariffs. This update aligns USPS mailing standards with new Universal Postal Union (UPU) regulations, also taking effect Sept 1, that require all member countries to enforce six-digit HS codes for commercial goods.
The ShipStation process for shipping internationally to EU member countries is much the same as shipping any international package, however, there are some specific requirements for harmonization codes and customs descriptions to keep in mind.
Beginning February 2nd, 2026, the European Union will have enhanced customs description requirements. The new requirements will include a list of Stop words, which are generic descriptions that prevent customs authorities from clearly identifying the nature of the goods being imported. Using these words on their own increases the risk of delays and rejections under ICS2. They may only be used if incorporated into a clear and accurate product description.
Newly added stop words include:
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Aid products
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Comercial
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Consumption
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Ensemble
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Fake
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Item
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Headwear
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Promotional
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Oddments
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N/A
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Miscellaneous
Tips for Clear Custom Descriptions
A good description is simple and specific. It should enable easy identification of the goods and accurate HS code classification. Avoid brand names, colors, serial numbers, or internal product codes. Descriptions that are too generic or overly technical are considered insufficient. Your customs description should answer the following questions:
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What is the Product?
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What are the Product's essential characteristics?
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What is the Product made from?
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How is it presented to customers?
Creating clear customs descriptions for your products will help ensure your shipments move smoothly through customs.
As of March 1, 2023, the European Union has implemented these requirements for shipments entering member countries.
These changes are part of the EU's ICS2 reform and apply to all shipments, no matter which carrier you ship with. While ShipStation will not prevent you from creating your label without entering an HS Code or more detailed item descriptions, failure to comply with these requirements could result in delays to your shipment as well as fines or penalty fees.
For more details about this change, how it might affect your shipping, and for answers to a few frequently asked questions, please read our blog post.
Code Requirements:
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Harmonized System Codes (HS Codes): All shipments now require Harmonized System Codes (HS Codes) for all items in a shipment.
Effective July 1, 2026, the European Union removed the de minimis duty exemption for qualifying low-value imports. Previously, qualifying shipments valued at €150 or less could enter duty-free. As a result, qualifying business-to-consumer (B2C) shipments valued at €150 or less may now be subject to a €3 customs duty for each unique HS code included in the shipment.
To comply with these new customs requirements, qualifying shipments require a Movement Indicator in ShipStation .
Important Compliance & Exemption Notes
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B2B Exemption: This duty, and the Product Identifiers requirement below, only apply to business-to-consumer (B2C) shipments, where the recipient is not VAT-registered in the destination country. Business-to-business (B2B) shipments (VAT-registered recipient) are not subject to either requirement.
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Customs Risk: Providing complete and accurate PID data helps ensure smooth customs clearance. Missing or incomplete data may lead to processing delays, holds, or shipments being returned by customs authorities.
This requirement applies to shipments that:
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Originate outside the European Union.
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Are shipped to an EU member country.
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Have a declared value of €150 or less.
The Movement Indicator identifies the shipment type for customs processing. In the Orders tab, select the appropriate Movement Indicator from Other Shipping Options.
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Movement Indicator |
API Code |
Use for |
|---|---|---|
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B2B |
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Business-to-business shipments |
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B2C |
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Business-to-consumer shipments |
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C2B |
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Consumer-to-business shipments |
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C2C |
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Consumer-to-consumer shipments |
If you regularly ship qualifying orders, consider creating an Automation Rule to automatically apply the appropriate Movement Indicator.
Effective November 1, 2026, every product in a business-to-consumer (B2C) shipment to the EU, regardless of value, must carry three Product Identifiers (PIDs) for customs authorities to identify exactly what is being imported.
Important Compliance & Exemption Notes
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B2B Exemption: This duty, and the Product Identifiers requirement below, only apply to business-to-consumer (B2C) shipments, where the recipient is not VAT-registered in the destination country. Business-to-business (B2B) shipments (VAT-registered recipient) are not subject to either requirement.
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Customs Risk: Providing complete and accurate PID data helps ensure smooth customs clearance. Missing or incomplete data may lead to processing delays, holds, or shipments being returned by customs authorities.
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Product Identifier (PID) |
What it is |
Product Details Field Name |
|---|---|---|
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M-PID (Merchant Product ID) |
Your own internal product identifier, typically your SKU. |
SKU |
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NS-PID (Non-Standardised Manufacturer Product ID) |
The manufacturer's own model or part number. Does not follow an international standard. Contact your manufacturer or supplier and ask for the product's model number or part number. If they don't have one assigned yet, ask them to assign one. |
Manufacturer Identification (MID) Code |
|
S-PID (Standardised Product ID) |
An internationally recognized code such as GTIN, EAN, UPC, or ISBN. |
General/Barcode (UPC, ISBN, GTIN, etc.) |
Note on S-PID (UPS Shipments)
An S-PID is only required if a standard identifier exists for the product. If your item does not have a GTIN, EAN, UPC, or ISBN, use exception code Y081 when shipping via UPS.
Follow these steps to add or update the three PID values for a single product record.
Update PID Fields in Bulk
To update PID fields in bulk across your entire catalog, see Update Products in Bulk via CSV in our Update Product Records article.
High-level bulk update steps:
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Export your product list to a spreadsheet.
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Fill in the PID columns for each product.
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Import the file back in to apply the updates across your catalog.
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Select the record from the Product grid that you want to update.
This action will open the Standalone Product Detail popup.
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Enter the M-PID (Merchant Product ID) into the SKU field and the S-PID (Standardised Product ID) into the Barcode field on the General tab of the Product Details popup.
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Go to the Customs tab of the Product Details popup, and enter the NS-PID (Non-Standardised Manufacturer Product ID) into the Manufacturer Identification (MID) Code field.
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Optional: Choose Apply changes to open orders to automatically apply these identifiers to all open orders. This action eliminates the need to input them manually for each shipment.
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Click Save.
When shipping internationally, you choose who pays duties at delivery: the sender via Delivered Duty Paid (DDP) or the recipient via Delivered Duty Unpaid (DDU).
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Delivered Duty Unpaid (DDU) |
Delivered Duty Paid (DDP) |
|---|---|
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Puts the customs charge on the customer. |
Merchants pay the customs fee up front. |
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DDU means EU customers will receive a charge request before they can collect their package. |
Smoother experience. Customer receives their order without surprise charges. |
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Can add friction for buyers and increase the risk of refused deliveries being returned to the sender. |
Merchants often build it into their pricing. |
With the new flat-rate EU duty applying to every qualifying B2C shipment, DDU means your EU customers receive a charge request before they can collect their package. That creates friction and, in some cases refused deliveries that come back to you. DDP keeps the experience clean: you control the cost, build it into your pricing, and your customer receives their order without surprise charges.
See the Create DDP Labels section of our Bill International Duties to Payor of Shipping Charges (DDP) page to learn more.
🇺🇸 🇨🇦 For US and Canada-based account holders, and certain ShipStation Carriers, ShipStation also offers Guaranteed Prepaid Duties and Taxes, letting you pay all applicable duties, taxes, and fees upfront so your customers never face surprise charges at delivery. As long as your shipment details are accurate, the quoted duties, taxes, and fees are locked in, with no adjustments to those charges after the fact.
Some details of these requirements are not yet finalized or binding, but are expected to be clarified as the EU confirms them:
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An additional EU-wide handling fee (on top of the €3 duty), draft range €2–4 per item. The amount and start date are not yet adopted.
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Which HS codes are excluded from the PID requirement, and require a disclaimer or exception code instead.
We'll update this guidance as soon as these points are confirmed.
Disclaimer
This is not legal advice. Please consult your customs advisor for guidance specific to your business.
Review the frequently asked questions below to understand how the new EU customs rules impact your B2C shipments and what steps you need to take in your integration to avoid delivery delays or penalties.
This update applies to shipments originating outside the EU and destined for an EU member state. Starting July 1, 2026, the EU will remove the €150 duty-free threshold: a flat €3 customs duty per HS line item will apply to B2C shipments valued €150 or less.
Starting November 1, 2026, Product Identifiers (PIDs) will become mandatory for B2C distance-sale shipments into the EU, regardless of value. This applies to B2C shipments (recipient not VAT-registered in the destination country). B2B shipments (VAT-registered recipient) will not be subject to the €3 duty or the PID requirement.
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Merchant Product ID (M-PID): your own internal identifier (SKU).
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Non-Standardized Manufacturer Product ID (NS-PID): the manufacturer's own model or part number. If you don't have one, contact your manufacturer or supplier to obtain it.
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Standardized Product ID (S-PID): GTIN, EAN, UPC, or ISBN.
ShipStation is able to transmit M-PID, NS-PID, and S-PID data to carriers. However, each carrier is enabling this capability on its own timeline.
Start setting the Movement Indicator for all B2B/B2C shipments.
Audit your product catalogue now and fill in all missing PID data across M-PID, NS-PID, and S-PID to avoid customs holds. PIDs must be assigned to every distinct product variant (color/size combination). Batch-level or lot-level identifiers will be rejected at customs.
Yes! You'll be able to provide PIDs voluntarily starting July 1, 2026, so you can start entering and testing this data once that window opens.
Shipping without PIDs before November 1, 2026 will carry no penalty, but starting early will help you avoid disruption once it becomes mandatory.
See the DDP vs. DDU for EU Shipments section of this article.