ITC-HS Codes or better known as Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations. Indian custom uses an eight-digit ITC-HS Codes to suit the national trade requirements.

ITC-HS codes are divided into two schedules. ITC(HS) Import Schedule I describe the rules and guidelines related to import policies whereas Schedule II describe the rules and regulation related to export policies. Schedule I of the ITC-HS code is divided into 21 sections and each section is further divided into chapters. The chapters are further divided into sub-heading under which different HS codes are mentioned. HS system has been developed by World Customs Organization uniformly applied by more than 140 countries worldwide.

The Indian Tariff Code has 8 digits which have been designed in such a way without any modification of first 6 digits as per H.S code system, but followed by another two digit classified as ‘tariff item’. So ITC has been classified as first four-digit code called ‘heading’ and every six digit code called ‘subheading’ and 8-digit code called ‘Tariff Item’. This addition is done, within the permissible limit of World Customs Organization – WCO, without any changes in H.S.code system.