What Is the Difference Between the HS Code and the NCM Code?

The HS code and the NCM code are classification systems used in international trade, but they have different scopes and levels of detail.

HS Code (Harmonized System):

• This is a global system established by the World Customs Organization (WCO).
• It uses six digits to classify goods traded in thousands of product groups.
• Provides a standardized language for identifying products across borders, facilitating customs clearance and international trade statistics.
• Most countries around the world use the HS code as the basis for their own customs tariffs.

NCM Code (Common Nomenclature of Mercosur):

• This is a regional system specific to the Mercosur trade bloc (Argentina, Brazil, Paraguay, Uruguay, and associate countries).
• It is based on the HS code but adds two additional digits for further differentiation of products within the Mercosur region.
• Allows for a more granular classification of goods relevant to trade among Mercosur countries.

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