If you are engaging in international trade there are lots of things to deal with. You are bothering to follow the rules and regulations of international trade. Need to acquire knowledge of all the taxes, customs tariffs, licenses, and various documents for smooth running for business.
In addition, the HS code is the most important detail to be filed to provide more clearance about the product across the world. HS code (Harmonized System of Nomenclature) provides the systematic classification of goods to make the international export process smooth and simple.
Harmonized System code is the world accepted coding system that is developed by the World customs organization. The taxation system becomes so easy by using the HS code system.
HS code accuracy is necessary to avoid any hassle at the time of transferring goods to other nations. More than 20000 goods are imported by using the HS code across the world. More than 90% of the international trade is done under the guidance of WCO.
So, search for accurate HS code of the goods to make the export process simple for the traders and customs authorities. Taxation calculation is easy to understand for everyone with Harmonized System code.
Who determines the Harmonized System code?
WCO provides the guidelines for using the HS code that helps the exporter to search HS code for the description of the products. The codes are updated from time to time by the World customs organization. WCO has the right to add new headings and subheadings to account for new products that are entering the international market.
Purpose of HS code for the exportation of goods across the world-
Importer and exporter both need to understand each other to trade successfully. There is a need for a common and accepted term for communication even if their language is different.
For instance, you are exporting the toys then your importers need to understand the kind or type of toys that is the main purpose of the HS code. Harmonized System code provides the exact description of goods for importers and exporters.
Harmonized System code should be correct and accurate for applying the import tariff rate. Any mistake can be a reason for any further loss to the business.
Importance of HS code for the customs authorities: –
HS code works as a boon for each country’s customs authorities to manage the inventory at the port. The system provides aid to each country to manage trade, calculate tariffs and carry out economic analysis for different purposes.
How does Harmonized System code boost your export?
The smooth process of exporting goods globally to other countries kicks the export resulting in a hike in the economic growth of the exporting countries. HS code provides aid to avoid any delay of the goods and denial in the global economics. Accurate and appropriate description with having the correct HS code is the important step of the process of exporting goods or products.
Here are things that are included in the description of goods: –
- of items
- Unit cost
- Common and Scientific Name (for some products)
- Total cost
Search HS Code and mention on the commercial invoice to avoid unnecessary delay of goods. If HS code and description of the product are matched prevents you from the issues that may arise at the time of shipping goods to another nation.
Through the HS code, the customs officers easily handle the stress of checking the goods are eligible for the taxes or exempted. The exporter should have the knowledge of HS code and regulation that is needed to export goods in the foreign countries.
Harmonized System code – digits of the code and structure of the HS code
Generally, HS code will be four or six digits to categorize more than 5000 commodity groups further, it includes 21 Harmonized System code, 99 Harmonized System chapters, thousands of headings, and subheadings.
In addition, countries can use additional 2-4 digits to make the goods more classified as per the countries. A more detailed description clears the hurdles to export the goods to other global countries. For an exporter, this is important to research the code that is using in the country to which you are shipping the goods.
You can check the different national customs authorities to find out the accurate code that is using in the selected countries. You can search HS code online for the accurate HS code for the US at the U.S. International Trade Commission website. Some countries use eight-digit code systems, such as Brazil, Argentina, Paraguay, and Uruguay. 13 – Digits HS code system is used by China for the exact categorization of country.
How to search HS code?
If you don’t have any prior knowledge about the HS code then it can be a difficult task for you to find the code in the customs tariff book. The book is too lengthy to find the HS code for any product. What can you do? Just type the name of the product in Google and the HS code will be on screen. Maybe you will get a four-digit HS code for your product.
For more detail and description, you can search in the customs tariff book, it will take you to the specific section and you can also get the HS code of the related items here.
You can also Search HS code with the help of the CBEC website’s rate finder that is provided by the government authorities or to reduce your workload just hire a data provider company to get an accurate HS code for the export of the products.
Search HS Code and detail your document
Make sure your HS code of goods should be accurate to ignore the arising issues due to the customs officers at the ports. Search additional digits that can specify the products in more detail and put the final code on the commercial invoice and other documents. Do trade successfully by using the Harmonized System code and enhance your exports to get the expected growth of your international business.