President-elect Donald Trump has said that tariff “is the most beautiful word in the dictionary”—but it’s not easily defined. 

Tariffs are taxes placed on products that cross international borders. In the US, both Congress and the executive branch have the power to levy tariffs on goods. Recently, US presidents have imposed tariffs to protect such domestic industries as aluminum and steel by raising the cost of importing competing goods.  

Jeff Bensing, SPA/BA ’92, a private sector advisor for the US Council for International Business, first learned about tariff codes and the complex global system to maintain them when he worked for US Customs and Border Protection. The Harmonized System (HS), developed by the World Customs Organization (WCO), includes six-digit codes for more than 5,000 commodity groups. The system is used by over 200 countries, including the US, to apply customs duties on more than 98 percent of goods.

As one of two industry observer delegates, Bensing attends quarterly meetings of the WCO’s HS committee in Brussels to ensure that the coding system is up to date. Recently, he helped create new tariff categories for electric bikes that will be implemented in 2028—work that will keep the wheels of global commerce turning. 

Crack the code—Here’s how the Harmonized System works:

09 Chapter Any coffee, tea, maté, or spice product

02 Heading Applies to both flavored and unflavored tea

30 Subheading Includes fermented black tea in packaging of 3 kg or less

10 Tariff Code Identifies country-specific duty rate

15 National Heading An optional further breakdown of the commodity (e.g., certified organic)