HS Code
or Harmonized System code is used to define an item in the import-export
business. It has globally standardized names and numbers to classify each category
of items. This code is also known as the tariff code as well as it is mandatory
for both global and local import-export business. There are many questions
revolving in your mind right now like what is HS Code? Why it is used in the import-export business? What is the
structure of this code? Go further to get answers of all these queries….
Explore the Meaning and Structure of
HS Code
HS code came into effect in the year 1988 and since
has been maintained by WCO that is known as the World Customs Organization. Under
this system, a code is given to all the items traded locally and globally. In
this harmonized system, products are mentioned in 21 sections and 99 chapters.
In countries like Brazil and India, HS Code
is used up to 8 digits while there are a few nations like Russia and USA in
which this code is used up to 10 digits for product’s classification.
If we are talking about its structure in India,
primary two digits define a “Chapter”, next two digits define
the “Heading”,
third two digits define the “Sub-heading”, and the last two
digits define “Tariff Item Level”.
How HS Code
is known in Other Countries?
Harmonized system code is known with several different
names in other countries, but it’s one and the only objective is to define an
item in the import-export business. So, let’s explore the names of HS code in
other countries:-
HSN Codes in
Brazil
This coding system is known as NCM (Nomenclatura Comum
Do Mercosul) in Brazil. It is used up to 8 digits for not just selling or
buying products locally, but trading products internationally as well.
HS Codes in
China
HS Code in China uses up to 8 digits; however, most of
the products are classified up to 10 digits also. In this country, this code is
also known as the Customs Tariff Code.
In India, some people use HS code while others uses the
Harmonized System of Nomenclature to pronounce this coding system. It is used
up to 8 digits in the import-export business.
HS Codes in
Indonesia
Indonesia uses BTKI (Buku Tarif Kepabeanan Indonesia) up to 8 digits to
categorize an item in the business.
HSN Code in
the United States of America
USA uses HTS (Harmonized Tariff Schedule) up to 10
digits for classifying any product in the business with better specifications.
HS Codes in
Vietnam
Vietnam uses CTC (Custom Tariff Code) up to 8 digits
to categorize any product in the import and export business.
Why is it
Important?
As earlier mentioned, HS Code is used to classify a product in both global and local business. In the import-export movements, it is significant for the government and companies. How? Let’s find out below:-
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