The HS Customs Code, also known as the commodity code, is a key code used to identify goods in international trade. Understanding the HS Customs Code is of great significance to foreign trade enterprises, as it directly affects aspects such as commodity tariffs, import licenses, and regulatory requirements.
The HS Customs Code is a commodity classification and coding system formulated by the World Customs Organization, which is used to identify goods in international trade. Each HS Customs Code consists of six digits, representing a specific commodity category. By accurately classifying goods with the HS Customs Code, enterprises can understand information such as the tariffs, import licenses, and regulatory requirements of the goods, thus enabling them to conduct foreign trade transactions more effectively.
Functions of the HS Customs Code:
- Tariff reduction and exemption: Tariffs vary according to different HS Customs Codes. Accurately classifying goods with HS Customs Codes can help enterprises understand the tariff situation of the goods, so as to obtain corresponding tariff reduction and exemption when importing or exporting.
- Import license: Some goods may require special import licenses. By accurately classifying goods with HS Customs Codes, enterprises can understand whether they need to apply for import licenses, as well as the application procedures and requirements.
- Regulatory requirements: The regulatory requirements vary for different goods. Accurate classification with HS Customs Codes can help enterprises understand the regulatory requirements for a particular good, ensuring that the goods meet relevant standards and regulations.
- Trade statistics: The HS Customs Code also serves as the basis for international trade statistics. Through classification using HS Customs Codes, the import and export of various goods can be counted, providing data support for enterprises to formulate foreign trade strategies.
How to determine the HS Customs Code?
Determining the HS Customs Code requires a comprehensive consideration of multiple factors such as the commodity’s name, use, material, and manufacturing process. The following are some common methods for determining the HS Customs Code:
- Consult relevant materials: Enterprises can consult relevant HS Customs Code manuals, commodity classification guidelines and other materials to understand the classification principles and requirements of HS Customs Codes for different goods.
- Consult professionals: Enterprises can consult professional customs brokerage companies, freight forwarding companies, trade consulting agencies, etc. to obtain opinions on the HS Customs Code classification of specific goods.
- Refer to peer cases: Enterprises can refer to cases of other companies in the same industry to understand the HS Customs Code classification of the same or similar goods.
- Official inquiries: Enterprises can log on to the official websites of customs departments of various countries or the World Customs Organization to inquire about the HS Customs Code classification information of specific goods.
Attention! Since the HS Customs Code may be adjusted in line with the changes in the international trade situation, enterprises should keep an eye on relevant developments at all times to ensure that the HS Customs Code they use is up – to – date.
Regarding the application for customs codes:
The application procedures and requirements for HS Customs Codes may vary by region and specific circumstances. Generally speaking, the application process for HS Customs Codes includes the following steps:
1. Prepare relevant documents
Before applying for the HS Customs Code, enterprises need to prepare the following documents:
2. Submit an application to the local customs.
After an enterprise has prepared the relevant documents, it can submit an application to the local customs. For specific application procedures and requirements, the enterprise can consult the local customs or freight forwarding company.
3. Wait for the review results
After the enterprise submits the application, it needs to wait for the customs to review the application. The review time may vary depending on the region and specific circumstances, usually ranging from several working days to several months.
4. Obtain the HS Customs Code certificate
Once the application is approved, the enterprise can obtain the HS Customs Code certificate. This certificate will serve as one of the valid documents used by the enterprise in import and export trade.
It should be noted that the application processes and requirements for HS Customs Codes may vary in different countries and regions. For specific operations, the enterprise can consult the local customs or relevant agencies.
When declaring the HS Customs Code, enterprises should ensure the accuracy of the information filled in to avoid affecting the customs clearance efficiency and causing unnecessary losses.
Enterprises should abide by relevant laws, regulations and rules to ensure that the declared HS Customs Codes meet regulatory requirements, and avoid fines or other adverse consequences due to non – compliant operations.
The HS Customs Code is an important key in foreign trade transactions. Accurately classifying goods with the HS Customs Code can help enterprises conduct foreign trade transactions more effectively.
HS Customs Code Information Inquiry: General Administration of Customs of the People’s Republic of China (customs.gov.cn)
