How to Find the Right HS Code for Products?

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How to Find the Right HS Code for Products?

An HS code or HTS code plays a vital role in Global Trade. In this blog, you will find all the information about HS code & the process to find the correct one.

We can’t even begin to imagine the volume of goods that are being traded around the world today, for the ever increasing expansion of international trade business. Wouldn’t the importers and exporters be lost without a standardized classification system? This is precisely the reason for which the World Customs Organization developed the HS code and established it as a multipurpose global product nomenclature. So, HS code means or represents unique digits that help in classification and determination of various product types and categories being traded across the globe. It can be anywhere from two to ten digits. Certainly, this is a very important code for governments and customs officials as well as they use it for product clearances at the customs and to determine the tariff.

What makes HS code so important?

The very fact that the HS code system is universally recognized by over 200 nations speaks volumes about its relevance in international trade. A report by the World Customs Organization indicates that the HS code system covers over 98% of the merchandise in global trade. However, it is also important to note that the HS code does not apply to services and is used on a global basis only for goods.

The HS code plays a crucial role in the following aspects:

● Clearance of shipments

● Determining and collecting duty tax by the governments and customs

● Legal responsibility of both importers and exporters

● Generating and studying trade trends and statistics

How do you find the right HS Code for products?

Finding the right HS code can be a confusing and daunting task. But at the same time, it is highly critical to find the HS code for goods including HS code for shipping, HS code for import. Here’s how you can go about it.

● You can visit the website here to find HS code for products.

● SaaS (Software as a service) platforms such as Zonos and Moselle can be used for automated HS code determination. With automated tools, you can save immensely on time and efforts.

Before finding HS code, know the difference between HS code and HTS code

While these two terms are used interchangeably by the exporters and importers in casual conversations and it is not wrong, it is important to know the difference between the two terms. The HS code, a universal standard, is a system with two to six digits and the HTS and is used in most documentation and invoices and the (Harmonized Tariff Schedule) code ranges between seven to ten digits, and is specific to the United States. All importers in the United States need to be informed about the HTS code for understanding the tariffs and duties based on this classification. Once you know the difference between the HS code and HTS code, looking up for them will be a much easier process as the chances of going in the wrong direction have been ruled out.

Where can you find more information on Codes used in Global Trade?

With the surge in online research by the end users, many platforms have emerged that provide relevant information in the area of international trade. One such platform is Trademo where you would not only find resources on trade compliances, trade laws, trade agreements, global supply chains, trends, and global logistics, but also get access to a tool that helps you find credible buyers and sellers. It is a website worth checking out and make sure you visit the blog section as well where well-research articles have been written on the classification system of goods in global trade.