Complete Guide on Understanding HS Codes for your Goods

OVERVIEW

There are numerous goods and products that are being traded to and from different countries in the world. The goods being transported range from as small as cotton and rubber products to the most complex and sophisticated machinery and electric gadgets. The most prominent mode of transportation used for trading is waterways, i.e., from ships. Goods are delivered from one port to another with the help of big cargo ships. Other alternate ways are through roads and airways. As there are so many products being traded, a unique coding system was introduced by the higher authorities who look after the Import Export Data of every country to make the system more organized and simple. These unique numbers were termed HS codes (Harmonized System Codes) which are allotted to each product and are unique to every product.

HS codes now play a very crucial and primary role in trading goods as with the help of these codes, a trader can easily keep track of the goods he traded with different countries and in what quantity. As a whole, the complete process of maintaining the Import Export Data of every country has become pretty simple and streamlined.

INFOGRAPHIC PRESENTATION

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WHAT ARE EXACTLY HS CODES?

The Harmonized System codes and Coding System, better known as HS Codes are 6 to 8 digits unique codes that are assigned to each shipment and product that are supposed to be traded from one country to another. The point to be noted is that the HS codes are internationally accepted and follow a common method of understanding that makes them acceptable in 200+ countries at present.

The main use of this HS Code is to make the product distinguished from others and make the process for customs ports easy to bifurcate the things at the time of delivery.

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 HOW TO USE HS CODE? - GET HS CODE COMPLETE LIST

In this section, we are going to list the steps that would give you insights into how the HS code comes into play while shipping orders from one country to another and how it helps in maintaining the systematic records in the Import Export Data of every nation. For instance, a product is exported from the US to Turkey,

First and foremost, the primary information that would be needed is the HS code of the traded product as per the US schedule B and the HS code in the Turkish version of that same product. Once both versions of the HS code are derived, a person can use the same for:

• Classifying the goods for shipping purposes to a foreign nation.
• Reporting the shipments in the AES if the worth of the product is more than USD 2500, or the item needs a license.
• Completing the shipping documentation like the instructions given by the shipper, or the commercial invoice and origin certificate.
• HS codes are also used to calculate the import duty on a particular shipment based on the criteria set.
• Market research is also possible if the HS codes are mentioned accurately on the products.

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HOW IS A HS CODE MADE?

Taking into consideration the most general form of HS code that has 6 digits which are legally placed as per the basic standards and norms. The complete 6-digit code can be broken as follows:

Let the HS code of the certain product is 090111,

The first part of the code is 09. The initial two numbers represent the chapter of the good that is shipped, for example- coffee, tea, and spices.

The other two numbers, i.e., 01 tell that the product lies under which head. Suppose the product is coffee, then whether it is roasted or is a coffee substitute, that part is determined by the next two numerals of the HS code.

The final two numbers, 11, indicate that further there is a sub-heading after the main heading to bifurcate the product even more. If these two numbers are 00, that means there are no more sub-headings.

In this way, the final HS code, 090111 is formulated which tells that the product is related to coffee and is a substitute for coffee which is further roasted in nature.

In this way, these codes, better known as HS Codes serve as the main part of trading that makes things very clear for the traders and marketers to choose the correct product category and get an idea of how much tax would be levied on them at the end.

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BENEFITS OF HS CODES TO THE TRADERS AND MARKETERS

Apart from streamlining the entire Import Export Data process, HS codes benefit traders and marketers too. Some of the benefits derived from HS codes are:

• Helps in easy and comfortable customs clearances.
• No longer need to carry catalogs and records.
• Helps to maintain costings, taxes, and tariffs.
• Legally acceptable

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WHICH IS THE BEST COMPANY THAT PROVIDES AN ACCURATE LIST OF HS CODES?

There are multiple companies available online that provide HS codes for most of the products, but the level of authenticity and accuracy is not known. Unlike random companies, if you are looking for HS codes for multiple items, then contact us and get the most accurate and correct list of all HS Codes. Follow these simple steps to get the list of all HS codes.

• First and foremost, visit our website: https://tradeimex.in/hs-code
• A complete list of products with their HS codes will be displayed.
• In the search box, mention the description or initial numbers of the HS code for the product you are looking for.
• A list of items as per the entered description or code would be displayed.
• Now, as per your choice, pick the required codes.

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FINAL VERDICT

Applying HS Codes to every shipment is now mandatory as per the rules and regulations of customs authorities of every country. Not applying HS codes can lead to wrong calculations of the taxes or sanctions levied on each product. Moreover, the wrong identification of products is the major problem that comes if HS codes are applied inappropriately or not applied at all. For more guidance and knowledge about the HS codes, feel free to contact us by mail, call, or direct message.

WEBSITE: https://www.tradeimex.in

EMAIL ID: info@tradeimex.in

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