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BICS

What is an HS code and how do you find it?

How to find your HS code for BICS: where to look and why the right code matters for your energy relief application.

Millie Palmer

A Harmonised System (HS) code is an international classification for traded products. For the British Industrial Competitiveness Scheme (BICS), it is part of the requirements to apply for up to 25% off your electricity bill.

With only four basic requirements for manufacturers in Great Britain, getting those four right from day one should be your first port of call.

What is an HS code?

The HS is a global system for describing goods, used by customs authorities worldwide. It starts with a chapter and builds to a six-digit code. A code, such as 8708.30, identifies a specific product (in this case brakes and servo-brakes and their parts for motor vehicle assembly).

In the UK, businesses that trade goods add further digits to make an eight or ten-digit commodity code. For BICS, only the first six digits matter, so if your product appears under a longer UK commodity code, you're matching the first six digits to the list.

It answers a different question from your SIC code, which is another requirement for BICS: your SIC code shows you operate in an eligible industry, while your HS code shows that the product you make at the site is eligible too.

How do you find your HS code?

For businesses that don't export and don’t have the customs documentation, the Trade Tariff service is the tool the guidance points to. It works in four steps.

  1. Describe the product you make, in plain terms and in its finished form.
  2. Search the Trade Tariff for that description, or browse by chapter.
  3. Narrow down to the heading and subheading that fit, and note the six-digit code.
  4. Check that code against the eligible list for BICS.

For example:

A company manufactures brake assemblies for vehicle makers. It searches the Trade Tariff, lands on heading 8708 and settles on 8708.30. It then confirms that the code appears on the GOV.UK eligibility list. When applying for BICS, the company quotes this HS code in its statement.

Where can you check the list?

The government has published the full list of eligible HS codes, as well as eligible SIC codes for qualifying industries. You can find the list here.

If you want an even quicker check, Energy Relief Vault has developed a free online checker that speeds up your eligibility review. All you need to do is enter your company name and product information, and our checker does the rest.

Do you need to export to have an HS code?

No. There is no requirement to import or export to be eligible. Every manufactured product has an HS classification whether or not it has ever crossed a border, so you can find yours even if you only sell in the UK.

If you do export, your customs records already show how your products are classified. They can be used as supporting evidence, but they aren't required.

Why does BICS check HS codes?

BICS aims to support Great Britain’s manufacturers in frontier and foundational sectors, as part of the Modern Industrial Strategy. The idea is to support production in Great Britain by reducing the policy costs that affect energy-intensive manufacturers and keep us competitive in a global market. The government has identified sectors above electricity intensity threshold and is using the SIC and HS codes to ensure BICS supports those it’s designed to.

Your SIC code only tells BICS which industry you operate in. Being in an eligible industry doesn't make every product eligible, so the product you manufacture at the site is checked too. Your HS code (and associated energy used to make that product) makes sure that genuine manufacturers are receiving the support.

The government's list contains more than 1,600 eligible HS codes, spread across chemicals, metals, machinery, electrical equipment, vehicles and aircraft, among many others.

What if you make more than one product?

Your application needs to say which products you make at the site, including any that aren't eligible. Eligible and ineligible production can sit side by side, but ineligible production counts against your pro-rating.

Knowing which products at your site qualify and which don’t are essential to making a proper allocation and, thus, a proper application.

Where a process contributes to a product, such as coating or finishing, the HS code of the finished product is the one to use.

Key takeaways

  • HS codes test the product. Your SIC code tests the industry, and you need both.
  • Match six digits. Longer UK commodity codes are matched on their first six.
  • Exporting isn't required. Non-exporters can use the Trade Tariff service.

Product classification can be less obvious than it looks, particularly for components and specialist products. If you're unsure which code fits what you make, a quick check before you apply is far easier than a correction afterwards. Speak to the Energy Relief Vault team and they'll help you confirm where you stand.