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Understanding The Importance Of An HS Code - Business - Nairaland

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Understanding The Importance Of An HS Code by bowagateglobal: 2:02pm On Jul 06, 2020
Have you heard of the saying that HS codes will soon become a fact of life? In the real sense, traders in various countries may have no option than to depend on HS codes to get things running

In this week’s article, we want our readers to understand what an HS Code is all about, its importance, how it works, and how to find your HS codes.

What An HS Code Is?
In simple term, HS Code is that 6 to 10 digit number that categorizes any imported or exported goods. It is used internationally to accurately track and tax goods coming in and going out of a country. HS Code classifies your product for international trade and international freight.

HS Code refers to the Harmonized System, otherwise shorthand for ‘Harmonized Commodity Description and Coding System................................

I[b]Importance Of The HS Codes In Freight Shipping[/b]

The HS code requires to be properly categorized because of the following importance.

For taxes & accurate tracking of traded goods: Government officials require the HS Code to identify imported and exported goods for proper taxes. Correctly categorized goods with the HS code also helps for tracking purposes.

It is part of the Importers/Exporters Legal Responsibility: It is not a good business practice to Ship before assigning an HS code. Improper assigning or none assigning of an HS Code for your good can cause costly challenges. It can harm the business of all those concerned, e.g. the importer/exporter and the suppliers. Further Consequence like damaging the business reputations of individual concerned due to legal implications.

Implications Of Getting The HS Codes Wrong

1. Effect on Duty Rates:
2. Risk of Delays:
3. Regulatory Intervention Risk:

How To Find The HS Codes Of Your Products

It is highly imperative to understand customs tariff.

If the entire concept of HS code is new to you, the HS code includes 6-digits where the first 2 digit is the HS Chapter. The second 2 digits designate the HS heading, while the third 2 digits call the HS subheading and last two digits designate tariff item level.

For example,

HS Code 5911.90.00, Indicates Chapter 59 (Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use), Heading 11 (Textile products and articles, for technical uses, specified in Note 7 to the Chapter), Subheading 90 and Tariff Item Level 00

In an early post, we demonstrated how to calculate customs duty "https://bowagateglobal.com/2020/05/14/calculate-customs-duty-charge/". To determine the duty charge, the HS Code of the product is highly important.

Read full Article: https://bowagateglobal.com/2020/07/02/understanding-the-importance-of-an-hs-code/

Re: Understanding The Importance Of An HS Code by Nobody: 2:08pm On Jul 06, 2020

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