Table of Contents
What happens if you get the HS code wrong?
Incorrectly classifying a product can lead to non-compliance penalties, border delays, seizure of the products, or even a denial of import privileges. As the exporter of the products, you are responsible for correctly classifying them, and therefore you are liable.
What are the advantages of HS Code?
These 6-10 digit numbered Harmonized Tariff Codes serve two major roles and purposes aside from helping goods clear through customs: They identify products that are being imported or exported through a country’s borders. They classify and categorize products in a worldwide system used for customs clearance purposes.
What is the purpose of HS Code?
The HS System serves to standardize the names and terms used in classifying goods so that goods can be identified easily for different purposes during exports and imports. HS codes help to remove ambiguity while classifying goods for charging customs duty, surcharge, taxes, etc.
Who is responsible for HS code?
The Importer of Record is responsible for the correct classification of the goods. However, to facilitate the release process, importers may provide the exporter with the HS code for their products and ask them to include it on their invoices.
Is HS code Different for import and export?
Similarly, in India, goods for export and import have an eight-digit code called an ITC (HS) code, where ITC stands for Indian Trade Classification and/or Indian Tariff Code. This system has two schedules – Schedule I for imports and Schedule II for exports.
Who is responsible for HS codes?
What is HSN in GST?
HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world.
How many countries use HS code?
More than 200 countries currently use the Harmonized System as a basis for their national customs tariffs. The HS is also used as a basis for the collection of international trade statistics, trade negotiations and rules of origin, and the monitoring of controlled goods.
What is the correct HS-code?
The HS-Code is a six, eight, ten, or twelve digit number. The first six are the same worldwide. The numbers after that differ per country. Be aware of this if you have foreign suppliers sending you codes for the parts you get from them. Let’s take an electric guitar as an example. The correct HS-Code is: 9207 90 10 00.
How often is the HS tariff code updated?
The HS code is periodically updated to reflect developments in technology and trade patterns. The harmonized system committee is responsible for these amendments; they update the HS tariff code every five or six years.
How many goods are classified according to HS code?
An overwhelming 98\% of the goods traded are classified according to the HS Code. The advantage of using HS Code is that everything has been previously well defined, structured and recorded, thus reducing the efforts required by the trading parties for documentation of the carried goods.
Who is responsible for the governing of HS code?
‘The International Convention on the Harmonized Commodity Description and Coding System’ is responsible for the governing of the HS Code. They give the explanatory notes and come up with new rules for the classification of goods in lieu of latest developments in technology and changes in the trade patterns.