HS Code- A Commodities Classification Systemby Anam Seairexim Import Export Data Provider
If you've ever interested or have come through International trading and import-export then you must have come across the HS coding that is popularly known as the core of trade within International borders and, over 98% of 200 countries have adopted this system worldwide.
The HS codes stands for harmonized commodity description and coding system or simply harmonized system that is used globally for multipurpose product classification is revealed by world customs organization also known as WCO.
Before we get to know about what is HS system? Let's get to know about the creator of the HS system- the WCO functioning and working with a background of it.
World Customs Organization (WCO)
The creator of the HS codes system and sole authority of maintaining it has it’s headquarter in Brussels. Always gives its priority to the search hs code system but also it has the responsibility of maintaining the International custom standards that are solely related to import and export with governing potential building and scientific assistance to its members as per their needs.
It is also responsible for making and implementing the rules according to the trading system and also helps in maintaining custom rules across the boundaries of a complete Global hub that maintains International trades in custom regions and standards.
HS Classification Rules Highlights
The HS coding system has about 5000 commodity groups with a 6 digit unique code that are arranged in the nomenclature of a consistent and sensible manner with a complete instruction guide and rules to follow over this strict classification.
1. Every product is classified into a unique class product such as clothing or antiques when shipped worldwide. Also, their code of destination of the country importing and exporting should be different.
2. The code should be unique at all costs of different products and also it should be registered in the database that contains every detail and list of the rules and regulations of custom standards and duties internationally before exporting or importing a product with this number.
3. The verification of international custom standards is very strict and therefore you need to follow the rules very strictly or there would be a heavy fine and imprisonment while making a mistake in exporting and importing the products from one country to another.
4. Mostly the governments are responsible and use this HS classification for their easiness but if private companies are hired for this business then they need to be very careful or they will get their license canceled.
Benefits of HS code And HS Classification System
- Saves time to a great extent
- Very classified and exact
- Well uniformed for everybody
- Avoids confusion
- Have guidelines simplified
- Makes implementing the rules easy.
- It very unique and trade-friendly
- Avoid hastiness and frauds
- Stop illegal imports.
Created on May 10th 2021 05:49. Viewed 167 times.