The Harmonized System (HS) is referred to a global classification of goods categorisation extended by the World Customs Organisation in the year 1988. It has been worldwide accepted by more than 190 nations. The HS includes 6-digit codes for all business goods, which are utilised to please the requirement of the customs globally worldwide. In some cases, in order to import or export an item, it should assign an HS code that communicates with the Harmonized Tariff agenda of the country of import.
The majority of the nations have added extra digits to sort goods more distinctively. A specific code having six digits is a universal standard and a code with 7-10 digits is normally unique after the 6th digit and decided by single nation of import. These codes are compulsory as they not just find the tariff/duty rate of the deal product, but they also maintain a record of global trade signs that are utilised in some nations.
The Indian Trade Classification or Harmonized System code comprises 8 digits. The starting 6 digits are quite common according to the WCO with an extra 2 digits for additional specificity. There are two plans to the ITC HS:
Schedule 1 – Import tariff,
Schedule 2 – Export tariff.
These tariffs are considered as a key instrument for confirming the customs duty rate appropriate to imported products according to the First Schedule. The Second Schedule includes products that are liable to export duties as well as the rates of duties just in the Indian Customs Tariff Act of 1975. Import acceptability in terms of Foreign Trade Policy, duties that can be linked on the goods, advantages such as applicability of different duty exemption notices, recognition of applicable enticements for export goods, and finding out a product’s qualification under a trade agreement are also depends on HS code classification.
No comments:
Post a Comment