Harmonized System Code is an essential process when trading commodity. Traders when ordering items from abroad will need to specify the HS Code in the order process to ensure that the goods can pass through customs and shipping ports.
It is another innovative way that people can trade with one another, and they can easily specify the good description simply by mentioning the code. HS Code is maintained by World Customs Organization (WCO) where new products can be added through a global trade body.
Having this product identification number facilitates the trade of goods anywhere around the world. Simply using the number, anyone can know product name, description, category, tariffs and much more.
Traders, Banks, Customs and shipping lines all need to use this code otherwise making an international trade becomes difficult. Customs in both destination and host countries will need the HS Code to clear goods and charge duty tax, shipping lines need it to correctly identify the good and ship it properly, banks will need it so both buyer and supplier don’t have any conflict with the goods defined.
Items belonging to different sectors will fall under specific hs numbering, that is agricultural products will have a different numbering section than machinery goods. A product can have different hs code depending on the country’s customs policy, in order to settle disputes both buyer and supplier will need to mention this aspect in the contract.
Ensuring the right product number is essential and it is the duty of traders to make sure that accurate numbering is provided otherwise customs and shipping lines cannot clear the goods. To get the right code there are various organizations that will aid in identifying the right number for the product, which can be attained from customs, banks, c&f agents, shipping lines.
To learn more about harmonized system code, please check the site wcoomd.org.