Harmonized
System Code:- HS or Harmonized System code is also referred as HTS or Harmonized Tariff
Schedule Code. This coding system and its description is created by the World
Custom Organization (WCO) to categorized the goods in approximately 5,000
commodity groups which is accepted and implemented in more than 200 countries
across the world. The HS code has been used by 98% of Import Export trade throughout the world. The Harmonized System was
introduced in 1988 and has been adopted by most of the countries worldwide. It
has undergone several changes in the classification of products called as revisions.
These revisions happened in the years 1996, 2002 and 2007.
How
the HS Code is defined:-
World Customs Organization (WCO) has been
administering 6 digits HS codes schedule. First two digits are called ‘Chapters’,
first four digits is called 'heading' and six digits 'sub heading'. However
each country can modify by adding two digits or four digits as per their
requirements without changing first six digits. Or we can say that first six
digits of HS code remain the same in all the countries. The countries can add
the additional digits to categorize and define their commodities but cannot
change the first six digits. At the international level, the Harmonized System
(HS) for classifying goods is a six-digit code system.
Benefits of HS Code
·
It helps in enabling the amount of custom duties
payable to be calculated more accurately.
·
It helps in reducing the disputes with customs
·
It simplifies the trade transactions
·
It helps in shortening the customs clearance time
and processing costs
·
It facilitates the trade negotiations
·
Increases the trade supply chain security
No comments:
Post a Comment