®cleartax What is HSN Code? HSN code stands for “Harmonized System of Nomenclature”. This system has been. introduced for the systematic classification of goods all over the world. HSN code is a digit uniform code that classifies 5000+ products and is accepted worldwide. It was developed by the World Customs Organization (WCO) and it eame into effect from 1988. How does HSN code work? Ithas about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal anc achieve uniform classification. Why is HSN important? The main purpose of HSN is to classify goods from all over the World in a systematic and logic: and facilitates intemational trade. HSN Worldwide The HSN system is used by more than 200 countries and economies for reasons such as:logical structure. It is supported by well-defined rules to | manner. This brings in a uniform classification of goods