In international trade, there are many kinds of goods. How to accurately and efficiently classify and identify goods is a challenge faced by customs, enterprises and related institutions. This article will introduce HS code in detail to help classify goods in international trade.
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Introduction to HS Code
In international trade, the classification and identification of goods are crucial, and HS code (Harmonized System Code) is a unified classification system for global trade. HS code is formulated by the World Customs Organization (WCO) and widely used around the world to facilitate customs in various countries to identify, manage and tax import and export goods.
Features of HS Code:
- Globally applicable: Applicable to more than 200 countries and regions around the world, covering more than 98% of international trade goods.
- Standardization: All countries maintain the same first 6 digits, but countries can expand on subsequent digits.
- Dynamic adjustment: Updated every 5-6 years to adapt to emerging industries and technological changes.
Structure and Classification of HS Code
HS code is a classification system consisting of 6 digits, but many countries will add additional digits to the basic 6-digit HS code to meet their own trade management needs.
The structure of HS code is as follows:
- The first two digits: indicate the section, that is, the major category of goods.
- The first four digits: indicate the heading of the goods, which further subdivides the category of goods.
- The first six digits: indicate the subheading, which describes the attributes of the goods in more detail.
Country extension (8-10 digits): Different countries may add more digits to further subdivide the commodity classification.
The Role and Importance of HS codes
Global unified commodity classification: HS codes are used in more than 200 countries and regions to ensure the consistency of commodity classification.
- Tariff and tax rate determination: Customs of various countries set import and export tax rates based on HS codes.
- Trade statistics and analysis: HS codes provide a data basis for international trade statistics, making it easier for governments and companies to understand the dynamics of international trade.
- Trade facilitation: HS codes simplify international trade processes, improve customs clearance efficiency, and promote trade facilitation.
How to Find HS Codes
In international trade, knowing the HS code of goods is crucial for exporters, importers, and related logistics and customs service providers. Here are some common ways to find HS codes:
Consult commodity catalogs
Customs authorities in various countries usually publish commodity catalogs or tariff manuals that include HS codes. You can find the HS codes of goods by consulting these catalogs.
- China Customs Code Query: China Customs Import and Export Commodity Code Query System
- US HTS Query: US International Trade Commission HTS Online
- EU TARIC Query: EU TARIC Database
Use online search tools
There are many online HS code search tools. You can enter product names, keywords, or HS codes to search for relevant information. These tools usually provide multiple search methods to help users quickly find the HS codes they need. For example, Global Trade Atlas, Panjiva, etc.
Consult professionals
If you cannot determine the HS code yourself, you can consult professionals such as customs brokers and freight forwarders.
HS Code and Tariff Calculation
HS code is an important basis for tariff calculation. Tariff = Duty-paid price × tax rate (corresponding to the tax rate of HS code) Customs of various countries determine the tariff rate of imported goods based on HS code. Tariff rates usually include most-favored-nation rate, ordinary rate, agreed rate, etc.
Some countries will impose anti-dumping duties, value-added tax or consumption tax on specific goods
Learn more: Customs Clearance and Fees
Common Questions about HS Code
Is HS code globally unified?
The first 6 digits of HS code are universal, but different countries may add their own extended codes on this basis.
Is it possible for a product to have multiple HS codes?
In some cases, a product may meet multiple classification standards, so it is necessary to combine the use of the product, main ingredients and other information to determine the most appropriate HS code.
What are the consequences of using HS code incorrectly?
It may lead to customs clearance delays, fines, returns, and even legal liability.
As an importer or exporter of HS code, who is responsible?
The consignee of imported goods or the consignor of exported goods must provide the customs code for customs clearance to ensure that the code matches the actual goods, thereby completing the customs clearance process smoothly.
HS codes are a vital tool in global trade, affecting commodity classification, tariff calculation and compliance. Accurately classify HS codes through this article to reduce trade risks, improve customs clearance efficiency and optimize costs.