The HS Tariff have become an indispensable part of today's world trade as all exporters and importers need to declare it to customs before any kind of trade, this database release is highly appreciable. This code number is to appear on the invoice along with other standard tariff information, so that the client can add the correct HS number to its own invoices. It is these HS codes that determine the import-export admissibility, rate of duty and other important things related to the product.
The Harmonized Commodity Description and Coding System, popularly known as Harmonized System or HS code, is a multipurpose international goods nomenclature used as the basis for Customs tariffs and for the compilation international trade statistics all over the world. HS developed by the World Customs Organization (WCO) simplifies the task of importers and exporters by making available the entire data on a number of categories.
HS code is the numerical code, which can be used to describe a product which is being shipped from one country to another. It is basically a unique id assigned to a particular commodity or product, which is used by about 200 countries i. e. about 98% of the total trade of the world. It is a collection of such codes classified under several sections including animal products, mineral products, vegetable products, vehicles, aircrafts, ammunition etc. Every business related company has to assign the code number to its products, which appears with any other standard information about the product.
Under the HS Convention, the contracting parties are obliged to base their (HS) tariff schedules on the HS nomenclature, although parties set their own rates of duty. The HTS is organized into 21 sections and 96 chapters, accompanied with general rules of interpretation and explanatory notes. The HS Tariff system begins by assigning goods to categories of crude and natural products, and from there proceeds to categories with increasing complexity.
The harmonized code list is related to the import and export data of the country. Countless transactions occur every single day, throughout the world involving the 6 digits of the universally accepted harmonized system, which further get extended to 8, 10 or 12 digits, depending on the country and nature of products. The exporters need these lists for market research purposes, for filling up the shipper's export declaration, looking up for tariff rates and certificates of origin. Besides that, HS tariff also simplifies the task of importers and exporters by making available the entire data on a number of categories.
While it contributes to the import data as importers could easily make a reference to entire range of products bought and through it they also get an idea about the other kind of similar products available in the market, which could suit their needs better. The other major applications of HS code and code list are collection of internal taxes, data related to transport tariffs, its statistics, monitoring of certain goods such as narcotics, chemical weapons etc.