Harmonized System Code List – Purposes of trade records and trade data

For making global trading open and easy, harmonized system was introduced. To do trading without any sort of difficulty, collect information on Harmonized System Code List.

The harmonized system, or Harmonized System Code as it is more officially recognised, the harmonized commodity narrative and coding system, is a worldwide classification system planned to help the collection of trade figures as well as to support in the collection of tariffs as well as customs duties. From last many years, every country is following Harmonized System Code List for their own systems for classifying goods as well as services.

In the absence of a universal standard, it was hard or simply impossible to categorise properly merchandise for customs duties, collecting tariffs, or even reporting purposes. To decide this difficulty, the World Customs Organisation (WCO) designed the harmonized system. In this classification, the WCO shows all products with the help of a standardised six-digit harmonized system (HS) code. Moreover, the six-digit number categories goods by heading, chapter, and subheading.

The United States and similar developed countries have added extra commodity codes raising the number to 10 digits. The scheme is fairly complex; the whole harmonized tariff schedule has about 5,000 item descriptions divided into 22 sections and 97 chapters. Additionally for the customs use, HS codes give a data set for worldwide market research. HS codes are not the barely system for comparing data on business structure and deal. In the US, North American Industry Classification and the Standard International Trade Classification (SITC) are also used. For purposes of trade records and trade data, however, the harmonized organism is the world set.

Earlier to the expansion of the harmonized system, every country maintained its personal system. Exporters required dedicated staff whose role was to correctly code goods for entry into diverse markets. Special publishers also created concordances that connected one country's method to another. The difficulty of the system made it hard for small companies to do business without appointing customs brokers or similar other mediators.  

In the year 1970, a group recognised as the Brussels Tariff Nomenclature Group available a study that found that a consistent system of coding was both pleasing as well as possible. That original group turned the Customs Cooperation Council (CCC) and, with the support of more than 45 nations, executed the first Harmonized Commodity Description and Coding System. In 1994, the CCC modified to its present name, the World Customs Organisation. The WCO connects representatives from its just about 200 member countries to preserve and modernise the HS code system and to give advice and policy advice for national customs services.

The 10-digit HS code digit sorts goods by heading, subheading, chapter, and commodity codes. Each chapter starts with a domain declaration that describes goods that are integrated in the chapter and then goods one would keep out. So, it is important for a business associate to be familiar about Harmonized System Code List.