What is HS Code India and why do we need it? Let’s explore in it
When it comes to import-export trade, classification is a crucial step in the entire import and export procedure. HS Code is immensely used in each and every global trading process. Being an exporter or importer, it is necessary to properly understand and make appropriate use of it. Harmonized commodity description, harmonized system code, tariff system, and coding system are several names of HS Code India. It is a common standard worldwide for unfolding item’s type i.e. shipped.
Any product that crosses or enters most international borders has to be affirmed to customs using this coding system. So, this code assists to recognize and systematize freight in a similar manner whether it is in Rotterdam, Mali or Singapore.
A few facts to be noted-
- Over 98% of goods in the global trade are classified in terms of harmonized system code
- Managed and developed by the WCO (World Customs Organization)
What’s actual purpose behind using HS Code India?
It is used by several international organizations and governments for observing the locale of consignment and carriage tariff, collecting taxes, assembling of transport and trade statistics. It doesn’t matter what method of conveyance you’re using.
Struggles in classification for firms
Classification or organization of traded products is not simple until you have updated and genuine HS codes. It is a universal economic language and code for products that have made it an indispensable tool for global trading. Using appropriate coding system can be pretty tough in certain occasions. Analysis of this code may vary amongst nations and of course customs authorities. Always try to avoid mistakes that upsurge the price of imports exponentially to the client.
Using correct HS Code India is of utmost importance for an importer because usage of wrong code may be referred by customs as misleading, non-compliance or misdeclaration- all of these come with its linked penalties.
If you’re in doubt, it would be great to consult customs professionals for suggestions.