Details about Harmonized Tariff in U.S.

by Wayto Singh waytosingh Whenever discussion about the international classification system comes up, the subject of harmonized tariff schedule for the United States is likely to come up. But most of the time, it is described or discussed in a superficial manner without giving proper details about what it is all about. Thus, this article shares the whole lot of information about this system for convenience of readers.

HS system & code

Harmonized commodity description & coding system is a simpler way to collect statistical data related to trade with which custom duties & tariffs can be collected easily. The need for such a system has arisen because of lack of universal standard for such practices. Each individual country or nation is using its own way to classify goods & services in international trade. And it was difficult to group them for collecting taxes, custom duties & tariffs. That’s the reason why such a system is designed for harmonized tariff in U.S. The Governing body for this system is World Customs Organization which uses a six digit code to classify goods & services.

Market research & HS code

The HS code which initially had 6 digits have been modified by the developed countries like the U.S. & it now has 10 digits. Because of the large number of items to be included through these codes, the harmonized tariff schedule for the United States have become complex. Along with its usefulness to custom duties & tariff collection, these codes are also relevant for the purpose of International market research. Along with this system, there are other systems taken in use in the U.S. like the SITC or the NAICS. But Harmonized system is an international standard.

Basics of Why HS code is needed

The need of an international system for harmonized tariff in U.S. came up as each country had maintained a system by itself. Professionals are required to place goods into the international markets. And links should be created to match the system of one country to another. Due to this, smaller organizations cannot trade globally as they needed custom professionals to work as intermediaries. Thus, to facilitate ease of global trade, around fifty countries came together to accept a system with which international trade can be enhanced.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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