Updated List of HS Code for Understanding the Rules of Classificationby Seair exim Import Export Data
Hello people, I hope you all doing well. So without wasting time let’s begin today’s blog i.e. all about HS code. Have you ever heard about it? If you are a person who’s involved in import-export business, you have definitely heard about HS code earlier. But, if not then I’ll explain it completely through my today’s blog post. In this blog, I’m going to explain each and everything about this code like what is it, how does it function, how many digits are there in this code and last but not least how does it work in different countries of the world.
Take a Quick Glimpse of HS Code!
The coding system and harmonized commodity description unusually mentioned as “Harmonized System Code” or simply “HS Code”. It is a versatile global product nomenclature created by WCO (World Customs Organization). This code is also known as HTS (Harmonized Tariff Schedule code). The only purpose to create HS Code is that it simply organizes the products into 5,000 product clusters which are implemented and accepted by 200 countries across the world.
Many people are getting confused about the digits in HS code. Only one question has come to everybody’s mind and i.e. how much digits HS code includes 2, 4, 6, 8 or 10? Let me explain it in simple language. WCO has been administrating six digits HS code schedule. The HS code has been used by approximately 98% of export-import across the world.
Now I’m going to explain it with an example:
HS Code 010111 is created for Purebred Breeding under heading 0101 (asses, hinnies, horses, and mules) underneath the chapter 01 (Live Animals). So, HS code chapter 01 is created for Live Animals, chapter heading 0101 is created for horses, asses, hinnies, & mules and harmonized system code 010111 is intended for Purebred Breeding. I hope you understand HS code with my example.
Although, every nation has authority right to modify the HS code by adding 2 or 4 digits according to their necessities without altering first 6 digits. In other words, first 6 digits of Harmonized System Code are similar in all countries. But they have right to add extra digits to define their products or services in a detailed manner. If we’re talking about the United States of America, 10 digits code are utilized for exportation purpose that is called as Schedule B. The organization below first six digits remains similar without violating the mutual code of WCO, but extra four digits are classified in a detailed manner. In India, eight digits are operated i.e. called ITC (Indian Tariff Code) number.
Why is it Necessary to Use Harmonized System Codes?
Either you’re an exporter or importer; you should have to use HS codes as the correct classification of products. It is a legal responsibility. If one fails to use HS code correctly then shipments will get delayed and you may hit with high penalties or fines. Another benefit of HS code is that it helps to calculate your bottom line as it can save all your money and time.
What will happen if you get it wrong?
If you’ve used improper classifications in the past then you may face some following charges:
- Duty has been underpaid
- Duty has been overpaid
- Duty remains the same
At last, there may be lots of work included in obtaining right HS codes but as an exporter or importer, this is the part of your job as well as a legal need. In order to get updated and genuine list of HS code Finder, it is advised to take expert’s help.
Created on Oct 18th 2019 01:22. Viewed 618 times.