{"id":417208,"date":"2022-06-09T09:59:34","date_gmt":"2022-06-09T09:59:34","guid":{"rendered":"https:\/\/www.b-sharpe.com\/blog\/hs-code\/"},"modified":"2022-06-09T09:59:36","modified_gmt":"2022-06-09T09:59:36","slug":"hs-code","status":"publish","type":"post","link":"https:\/\/www.b-sharpe.com\/en\/blog\/hs-code\/","title":{"rendered":"HS codes: a harmonized system at the heart of the import process"},"content":{"rendered":"\n

Despite being used by customs authorities around the world, HS codes are more than a little complicated. In this article, we zoom in on an harmonized system that aims to keep your foreign export operations running smoothly.<\/p>\n\n\n\n

Understanding HS codes<\/h2>\n\n\n\n

Definition<\/h3>\n\n\n\n

An HS code is a six-digit code<\/strong> that gives a precise indication as to the exact nature of an imported product. The Harmonized System behind this code streamlines customs clearance procedures for international imports and exports.<\/strong><\/p>\n\n\n\n

Used by import\/export businesses and in the international development of e-commerce sites, an HS code features in any documentation associated with the goods and is checked by customs authorities <\/strong>at the borders of importing countries before being cleared for customs. <\/p>\n\n\n\n

HS codes aid <\/strong>shipping procedures in three ways:<\/strong><\/p>\n\n\n\n

  1. allowing customs authorities to ascertain any taxes due as per the type of goods;<\/li>
  2. enabling customs authorities to check movement of the goods is permitted within the territory;<\/li>
  3. allowing the territory\u2019s administration to enrich its statistical data on imported goods.<\/li><\/ol>\n\n\n\n

    Good to know: <\/em><\/strong>HS codes are handled by the <\/em>International Convention on the Harmonized Commodity Description and Coding System.<\/em><\/a><\/p>\n\n\n\n

    The Harmonized System<\/h3>\n\n\n\n

    HS Codes came into force in 1983, standardizing customs procedures around the world, and are now accepted in 176 countries<\/strong>. The system is managed by the World Customs Organization <\/a>(WCO) which publishes guidelines explaining how the codes work.<\/p>\n\n\n\n

    The huge range of goods being exported and imported between countries means the Harmonized System is inevitably complex. However, the system gives all the continents and most territories<\/strong> their own export code<\/strong>.<\/p>\n\n\n\n

    This means 98% of goods imported for trade around the world fall under the Harmonized System \u2013 that\u2019s over 200,000 product types!<\/p>\n\n\n\n

    It is pretty much essential for exporting businesses to use HS codes nowadays if they want easy access to new markets, so understanding how the codes work is vital. The code will be requested each time your goods cross a borde<\/strong>r.<\/p>\n\n\n\n

    Good to know: <\/em><\/strong>The Harmonized System was last changed on 1 January 2017. Its classifications are updated every five years.<\/em><\/p>\n\n\n\n

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    Exchange your money quickly and securely<\/h3>\n\n\n\n
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    Learn more<\/a><\/div>\n<\/div>\n\n\n\n
    \"\"<\/figure><\/div>\n<\/div>\n\n\n\n

    The composition of an HS code<\/h2>\n\n\n\n

    The first six digits<\/h3>\n\n\n\n

    HS codes are made up of six digits in the following format: XXXX.XX.<\/strong><\/strong><\/p>\n\n\n\n

    This numerical sequence allows each product to be identified by its:<\/p>\n\n\n\n