HS and HTS Code | Import Export Code - Bizfoc

Overview

Import export plays a pivotal part in trading the global trade products. These products play an important role due to the desire and wants of these goods. However, shipping the specific product without the HS international code will pose a significant risk as it may lead to penalties or risks. The HS code has 21 sections and is further organized into 99 chapters with eventual heading of 1,244 headings which is eventually expanded into 5,224 subheadings.

Therefore, the HS international code is a six-digit code and is essential to assign the specific global traded product and is used to identify duty and tax rates for specific products. In this article, we will provide you complete insights on HSN international shipping code, structure, and list of HSN code corresponding to the category of products.

What is HS Code for International Shipping?

The HS (Harmonized System) Code for international shipping is the six-digit number which is assigned to globally traded products. This code is assigned and is used to identify duty and tax rates for specific products. Therefore, the concerned exporters who’re willing to trade beyond their territory need to have suitable HS international code for the products.

What is HTS Code?

HTS code or Harmonised Tariff Schedule codes is a unique 10-digit number that is specified to the United States only. This code is used to classify and sort the import and exported goods and to determine suitable custom duties on products. This code also helps to import regulations when bringing goods into the United States.

Difference between HS and HTS Code

Features of HS Code and HTS International Code

Here’s the features of HS International code, which are as follows:

• Uniformity in Standard for Duty and Tariffs:
  HS International Code is used by most countries that deal with the regular products and services by ensuring the custom procedures.
• Applicability of Duty and Tariffs:
  HS codes for shipping internationally are used by customs authorities to identify the suitable customs applicable to specific goods when traded internationally.
• Provide Fair and Transparent Data:
  The system of HS-international code is to simplify the trade data and statistics together by collecting the data throughout.
• Identification of Goods:
  HS international code specifies and classifies the goods in the international trade shipment.

Structure of HS Code

Here is the structure of HS code:

From the aforementioned HS code, the functions of the HSN code are as follows:

• Chapter:

  Here, the code that is represented in the table as AB is classified under the broad category of goods of HS codes under import export code. These 2 digits are considered a chapter under which trading is indicated about what type of goods is being traded worldwide.

• Heading:

  Here, the code that is represented in the table as CD is classified under the detail category of goods of HSN codes under GST. These 2 digits are considered a heading within the chapter of the goods counted under HS Code.

• Subheading:

  Here, the code that is represented in the table as EF is classified under the subcategory of goods of HS codes under GST. This is considered the main description of the HS code, by which the goods are being identified from the business for trading.

Consequence of Selecting Wrong International Code

• Incorrect Duty Calculations:
  Each product has different tax and duties slabs. Using the wrong international code for the global traded products may result in paying higher or lower tariffs than intended.
• Import Restrictions:
  Using incorrect HS Code on products, such as using the HS code for heavy industry products, can potentially restrict entry into new markets.
• Shipment Rejection:
  Mismatching the product’s classification with their HS Code will lead to rejection if misclassification is suspected.
• Legal Issues:
  The wrong HS international code leads to custom violations which may also charge risks and penalties on your import or may lead to custom delays.

Conclusion

Each HS code is an indication of different types of goods that are made for trading internationally. For facilitating smooth trade and customs clearance, the HS and HTS code for international shipping is an important factor to classify the product at universal and United States level respectively. For identifying both HSN codes for import and export of goods, you are required to seek professional assistance so that the procedures will be simplified.

Frequently Asked Questions

• Who regulates HSN Code?
  The World Customs Organization (WCO) regulates the HSN code. This organization monitors and regulates the WCO, by prioritizing the maintenance of HS Code.
• Is HTS code and HS code the same?
  No, the HTS code and HS code is not the same and has certain differences. The HS code is a universal code for encouraging multilateral trade, while HTS code is country-specific, generally used in the USA and European countries.
• Can multiple products share the same HS code?
  No, you can’t use the same HS Code for multiple products unless the product lies in the same category.
• How many HS codes are there?
  The HS code has 21 sections and is further organized into 99 chapters with eventual headings of 1,244 headings which are eventually substantiated with 5,224 subheadings.