HS Codes & HTS Codes Global Standard, Local Variations
3.Variations in HS Codes Across Countries
8.Official Websites for HS Code Lookup
For individuals engaged in international trade, a comprehensive understanding of HS codes is imperative. These codes play a crucial role in facilitating smooth transactions across borders, serving as the primary means by which products are declared to customs authorities. However, accurately determining the appropriate HS code for a given product can be a daunting task, often resulting in misclassification during customs declaration processes.
The term "HS code" stands for the International Convention for the Harmonized Commodity Description and Coding System, commonly known as the Harmonized System. Functioning as a standardized customs tariff code, HS codes are utilized by customs authorities worldwide to classify commodities involved in international trade. Presently, over 200 countries globally adhere to the HS code system.
Each commodity category is assigned a unique HS code, akin to an identification number. Examples include:
• 640351: Footwear with leather outer soles and uppers covering the ankle
• 640359: Footwear with leather outer soles and uppers not covering the ankle
The Harmonized System categorizes goods into 22 sections, which are further divided into 98 chapters. These sections and chapters broadly classify goods based on factors such as raw materials, usage, and performance. Additionally, chapters are subdivided into headings and subheadings to provide detailed descriptions of products.
HS codes consist of six digits, with the first two denoting the chapter, the third and fourth indicating the heading, and the fifth and sixth representing the subheading. For instance, the code 910111 corresponds to "electronic wristwatches" under Chapter 91 (Clocks and watches and parts thereof), Heading 01 (wristwatches), and Subheading 11 (electrically operated wristwatches).
3.Variations in HS Codes Across Countries
While the six-digit HS code remains consistent internationally, individual countries may append additional digits to create unique tariff numbers for further product classification. Consequently, countries develop their own import and export classification standards, often employing distinct terms for their tariff codes. For instance, the HS code is referred to as the HTS code in the USA, the commodity code in the UK, and the Taric code in the EU.
Published by the US International Trade Commission (ITC), the Harmonized Tariff Schedule (HTS) code serves as the classification system for imported products in the USA. HTS codes comprise ten digits, with the first six digits mirroring the HS code. For instance, the HS code 920110, representing upright pianos, can be further classified under HTS codes such as:
• 9201100005: Used upright piano
• 9201100011: New upright piano with a case height less than 111.76 cm
• 9201100021: New upright piano with a case height between 111.76 cm and 121.92 cm
In the UK, commodity codes are utilized for classifying imported and exported items, with the classification system overseen by HM Revenue & Customs (HMRC). Commodity codes consist of ten digits, with four digits appended to the HS code to facilitate further product classification. For instance, the HS code 920110, pertaining to upright pianos, can be classified under commodity codes such as:
• 9201109000: Used upright piano
• 9201101000: New upright piano
Similarly, other countries develop their tariff codes based on the HS code framework, albeit with slight variations to accommodate specific regulatory requirements and trade practices.
HS codes are indispensable in international trade, serving as the cornerstone for customs declarations. They determine product tariff rates and declaration requirements, thereby influencing the costs associated with importing and exporting goods. However, accurately classifying commodities can be challenging, as discrepancies in interpretation may arise between businesses and customs authorities. Misclassification can result in either underpayment or overpayment of taxes, leading to financial penalties and delays in customs clearance processes.
To mitigate such risks, it is imperative to use the correct HS code and refrain from arbitrary classification or selecting tariff codes solely based on lower tax rates. Compliance with customs regulations ensures smooth trade operations and minimizes the likelihood of punitive actions.
（1）What happen if I use the wrong HS code?
Your shipments could face 5 common issues:
a. Shipment delays due to detention or inspection.
b. Fine, penalties and confiscation.
c. Incorrect customs duty charge.
d. Denial of entry.
e. Rejection of tax exemption request in free-trade agreement or De Minimis.
While suppliers or freight forwarders can assist in determining HS codes, it is advisable to verify the accuracy independently. Various official websites and HS code lookup tools are available for this purpose. However, prior to conducting a search, it is essential to possess comprehensive knowledge of the product, including its material composition, use, function, and model, as these factors influence the HS code assignment.
8.Official Websites for HS Code Lookup
Customs authorities of different countries maintain official websites for HS code lookup, offering comprehensive lists of HS codes relevant to various products. Examples include:
• USA: hts.usitc.gov
• UK: gov.uk/trade-tariff
• EU: ec.europa.eu
• Canada: cbsa-asfc.gc.ca
• Australia: ftaportal.dfat.gov.au
• China: hsciq.com
• Japan: customs.go.jp
Suppose a batch of leather handbags is purchased from China, with the HS code provided by the supplier being 4202212000. To ascertain the corresponding HS code in the recipient country, the following steps can be taken.
Example: Searching for HS Code in the USA
For imports into the USA, the following steps can be followed:
1. Visit the USITC website.
2. Enter the first six digits "420221" in the search bar to retrieve a list of relevant HS codes.
3. Review the product descriptions and select the HTS code that best matches the product. For instance, if the description includes "reptile leather," the appropriate HTS code would be "4202213000."
In instances where the HS code is not provided by the supplier, a search can be conducted based on the product name. However, due to the potential for numerous search results, narrowing down the scope by identifying the relevant chapter of the HTS code is advisable.
Similarly, the process can be replicated for obtaining commodity codes in the UK and Taric codes in the EU, leveraging respective online resources.
In addition to official websites, various HS code lookup tools are available for quick and efficient tariff code identification. Examples include the GlobalPost HS Classification Tool, FindHS.Codes, and Frightos HS CODE LOOKUP. By entering a product description, such as "handbag," users can promptly identify the most suitable six-digit HS code.
Attaining the correct HS code necessitates familiarity with the classification standards and a thorough understanding of the product's attributes. When uncertainty persists, consulting local customs offices, professional customs brokers, or freight forwarders is advisable. Adhering to proper HS code classification ensures compliance with customs regulations and facilitates seamless international trade operations.
Should the product name fail to yield a corresponding HS code, alternative classification methods based on usage, materials, or categorization as "Other" may be employed. By adhering to these guidelines, businesses can navigate the complexities of HS code classification effectively, fostering efficient trade practices.
This article endeavors to enhance comprehension of HS codes and furnish practical guidance for HS code lookup. Should any queries arise, readers are encouraged to engage through comments for further assistance.
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