If there is one small detail that can delay your cargo, increase your taxes, or even get you fined, it’s using the wrong HS Code.
Every product imported into Kenya must be classified using an HS Code (Harmonized System Code). This code determines:
- How much import duty you pay
- Whether you pay VAT or excise duty
- Whether you need permits
- Whether your cargo is restricted or controlled
- How fast your goods clear customs
In this guide, we’ll explain what HS codes are, how they work in Kenya, real examples, common mistakes, and how Clearon Logistics helps importers get it right the first time.
What Is an HS Code?
An HS Code (Harmonized System Code) is an international product classification system used by customs authorities worldwide.
In Kenya, KRA uses HS codes to:
- Classify goods
- Apply correct tax rates
- Enforce import regulations
- Track trade statistics
Each product has a specific code based on:
- What it is
- What it’s made of
- What it’s used for
Structure of HS Codes in Kenya
HS Codes are usually 8 digits in Kenya:
- First 2 digits: Chapter (product category)
- Next 2 digits: Heading (product group)
- Next 2 digits: Subheading (specific type)
- Last 2 digits: National tariff line
Example:
8517.12.00 → Smartphones
This exact code determines:
- Duty rate
- VAT status
- Any special levies or controls
Why HS Codes Matter So Much in Kenya
Using the correct HS code affects:
✅ How much tax you pay
✅ Whether you need permits
✅ How fast your cargo clears
✅ Whether KRA queries your entry
✅ Whether you risk penalties or reclassification
A single wrong digit can change your duty from 0% to 25% or more.
Real Example: Same Cargo, Different HS Code, Different Tax
Let’s say you import LED lighting products.
- HS Code A: Classified as general lighting → Duty 10%
- HS Code B: Classified as decorative lighting → Duty 25%
On a CIF value of KES 2,000,000:
- At 10% duty → KES 200,000
- At 25% duty → KES 500,000
That’s a KES 300,000 difference just from classification.
This is why professional HS code verification matters.
Example 2: Machinery vs Spare Parts
Many importers assume machinery and spare parts fall under the same code. They often don’t.
- Industrial machine: May attract 0% duty
- Spare parts: May attract 10–25% duty
We’ve seen cases where importers:
- Declared parts as full machines
- Got flagged by KRA
- Faced revaluation, penalties, and delays
How to Find the Correct HS Code
You can:
- Check the KRA tariff book
- Use online HS code tools
- Consult a licensed clearing agent (best option)
But here’s the truth: many products fit into multiple possible codes. The correct one depends on:
- Material composition
- Function
- Level of processing
- Intended use
This is where experience matters.
Common HS Code Mistakes Importers Make
1. Copying Supplier’s HS Code
Your supplier’s country may use a different tariff interpretation. Kenya’s code may not match.
2. Guessing the Closest Code
“Looks similar” is not good enough. KRA uses legal tariff descriptions, not visual similarity.
3. Using Old Codes
Tariff codes change. Using outdated codes can cause:
- System rejection
- Reclassification
- Delays
4. Intentionally Using Lower-Tax Codes
This is risky. KRA:
- Has reference databases
- Does physical inspections
- Can reclassify and penalize you
What Happens If You Use the Wrong HS Code?
You may face:
- Reassessment of taxes
- Penalties and fines
- Clearance delays
- Cargo holds
- Loss of business time and money
In serious cases, cargo can even be seized.
How Clearon Logistics Helps You Get HS Codes Right
At Clearon Logistics, we:
✔ Verify HS codes before shipment arrives
✔ Cross-check against KRA tariff schedules
✔ Advise on duty, VAT, and levies in advance
✔ Identify permit requirements early
✔ Prevent reclassification and penalties
✔ Give you a clear, honest cost estimate before import
We don’t guess. We classify professionally.
Why Proper Classification Saves You Money
Correct HS codes help you:
- Avoid overpaying taxes
- Avoid penalties
- Clear faster
- Plan your costs accurately
- Price your products correctly
- Protect your profit margins
When Should You Confirm Your HS Code?
✅ Before you place the order
✅ Before the goods are shipped
✅ Before making payments to suppliers
✅ Before your cargo arrives in Kenya
This is exactly where Clearon Logistics adds massive value.
Final Thoughts
HS codes are not just numbers—they are the foundation of your import costs and compliance.
Get them right, and your imports are smooth and predictable.
Get them wrong, and you pay more, wait longer, and risk penalties.
If you want accurate classification, honest tax estimates, and stress-free clearance, work with Clearon Logistics—your trusted clearing and forwarding partner in Kenya.
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