Updated List of HS Code for Understanding the Rules of Classification
by Seair exim Import Export DataHello 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.
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Created on Oct 18th 2019 01:22. Viewed 849 times.