What’s HS code?
What’s HS code? HS code is called as customs code in some countries. HS code, short for the Harmonized Coding System. Its full name is “International Convention for Harmonized Commodity Description and Coding System” (Harmonized System, abbreviated as HS)
In June 1983, the Customs Cooperation Council (now known as the World Customs Organization) developed a commodity classification and coding system for customs, statistics, import and export management and common use with all parties involved in international trade.
The HS code “coordination” covers two major classification coding systems, the “Customs Cooperation Council Tariff Commodity Classification Catalogue” (CCCN) and the United Nations Standard Classification of International Trade (SITC). It is a systematic and multi-purpose international trade commodity classification system . In addition to being used for customs tariffs and trade statistics, it also provides a set of usable international trade in terms of billing, statistics, computer data transmission, simplification of international trade documents, and the use of general preferential system tax numbers. Commodity classification system.
Since January 1, 1992, my country’s import and export tariffs have adopted the World Customs Organization’s “Harmonized System of Commodity Descriptions and Codings” (HS), which is a scientific and systematic classification system for international trade commodities with six-digit codes. , Applicable to tax regulations, statistics, production, transportation, trade control, inspection and quarantine, etc. At present, more than 98% of global trade volume uses this catalog and has become a standard language for international trade. my country’s import and export tariffs adopt ten-digit codes, the first eight digits are equivalent to HS codes, and the last two digits are sub-headings of our country. It is a two-digit code extended according to the actual conditions of my country’s import and export commodities based on the HS classification principles and methods. .
Implement of HS code
HS was officially implemented on January 1, 1988, and revised once every four years. More than 200 countries in the world have used HS, and more than 98% of the global trade volume is classified by HS. The overall structure of HS includes three major parts: classification rules; category, chapter and subheading notes; heading and subheading codes and provisions arranged in order. These three parts are the legal provisions of HS, with strict legal effect and strict logic. HS first lists 6 general classification rules, which stipulate the classification principles and methods that must be followed when using HS to classify goods. Many categories and chapters of HS are listed at the beginning with notes (category notes, chapter notes or sub-item notes), which strictly define the scope of commodities that fall into the category or chapter, explain the definition of specific terms in HS or distinguish certain The technical standards and boundaries of the product.
Contents of HS code
HS uses a six-digit code to divide all international trade commodities into 22 categories and 98 chapters.
The following chapters are divided into headings and subheadings. The first and second digits of the commodity code represent “chapter”, the third and fourth digits represent “Heading”, and the fifth and sixth digits represent “Subheading”. The first 6 digits are the HS international standard code. HS has 1241 four-digit tax items and 5113 six-digit sub-items. Some countries have classified the seventh, eighth, and ninth digits based on their actual conditions.
In HS, “classes” are basically divided by economic sector, such as food, beverages, tobacco and alcohol in the fourth category, chemical industry and related industrial products in the sixth, textile materials and products in the eleventh category, The equipment is in the sixteenth category. Transportation equipment is in the seventeenth category, and weapons and ammunition are in the nineteenth category.
HS “chapter” classification basically adopts two methods:
1. It is classified according to the attributes of commodity raw materials. Products with the same raw materials are generally classified in the same chapter. The chapters are arranged in order from raw materials to finished products according to the degree of product processing. For example, Chapter 52 cotton is arranged in the order of raw cotton-carded cotton-cotton yarn-cotton cloth.
2, it is classified according to the purpose or performance of the goods. Many products in the manufacturing industry are difficult to classify according to their raw materials, especially products that can be made of multiple materials or products made of mixed materials (such as Chapter 64 shoes, Chapter 65 hats, Chapter 95 toys, etc.) and electromechanical instruments For products, HS is divided into different chapters according to its function or purpose, regardless of what kind of raw material it uses. In the chapter, headings or subheadings are arranged according to raw materials or processing procedures.
Each chapter of HS lists an “other” subheading, so that any import and export commodities can find their proper place in this classification system.
The HS code commonly used in various countries at present has a total of 10 bits, of which the first 8 bits are called the main code, and the last two are called the additional code.