A million products are usually shipped worldwide daily, all of which need to be categorized, checked and taxed by the customs authorities. The product may have different names in different countries. To prevent any confusion. These products are given an identification parameter called the HS code.
What Is HS Code?
The HS code stands for Harmonized System while the HTS code stands for Harmonized Tariff Schedule. This code is used wordwise to classify the items. These codes allow the customs to know that they are discussing the same product with distinct names.
The HS code is a six-digit code given to products that are exported. However, in some countries, these codes might increase to an eight-digit code. Thus, if you are an exporter, then it is highly recommended that the first thing that you should know about trading is the HS code and the HTS code.
What Is The Total Number Of HS Codes Present?
Currently, there are approximately 5,300 HS codes that are circulating in the market, which identify goods that are sorted. These codes are broken down into heading and subheading.
These codes are arranged in 99 different chapters with 21 sections. The HS code is divided into three different parts:
- The first two digits of the code give you a primary indication of the product.
- The following two digits of the code will allow you to identify the product category.
- The last two digits are particular with the goods that are exported.
Today, there are very few countries that don’t follow the 3-step rule of giving HS codes to a product. These countries usually use the old version of the Harmonized System instead of the new version.
Where Can You Find The HS-Code List?
Finding the HS code for products that are exported or imported is not a tough job. You can find the code for any item in the customs tariff of the respective country. But, what is the customs tariff…? Customs tariff is a book that consists of the HS codes of the products.
However, the book might be too long to extract the code if you are unfamiliar with it. You must be aware of at least the 4-digits of the HS code of your product to get the right one. Therefore, you can research your product online, and once you get it, you can verify it with the customs tariff of your country.
Easy Steps To Find HS Codes
Following is a list of detailed steps to perform HS or HTS code search easily:
Step 1: Open a search engine and type “HS code of your product”, and replace the word product with the product you want to find.
Step 2: There is a high probability that you will find it right on the top of the search engine results. After getting it, copy the 4-digit HS code.
Step 3: Now open the custom tariff book pdf of your country and press Ctrl F. By pressing this command, you will find a search box on your screen, paste the HS code in the box.
Step 4: After entering the number, the search box will direct you to the code section. You will now be able to see the related objects to the code. Go through their descriptions and extract the complete code of your product and use it.
These steps will help you to efficiently conduct the HTS code search and find the exact code. However, if you are still finding any difficulties in getting the HS code, you can look for platforms that provide you with trade data like Trademo.
On this website, you can do an HTS code lookup by searching by product name and country. After pressing the search button, you will find suppliers’ names and the HS code associated with the product.
What Is The Importance Of HS Code & HTS Code?
The HS code plays a very significant role in your import and export business. This code will help you to determine the customs duty and taxes. You can get the HS code from your supplier while importing an item. However, if you analyze a product for import or export, you might have to get it yourself.
The Harmonized Systems is connected with the Harmonized Tariff Schedule of the several countries where you wish to export your product. In some countries, you might have to pay import duties on the HS code that you give to your products.
However, if you fail to do a thorough HTS code lookup and don’t apply these codes on the products that you export, the products might be seized, or you may face the issue of penalties.
When more than one HS code is applied to a product, you must check with the destination country’s customs. Thus, it becomes necessary that you focus on this topic before exporting any product to a foreign country.