What is an HS code and why are they important?
If you're involved in international trade, you've probably heard the term HS code. Read on to find out why they matter!
What is an HS Code?
HS code stands for Harmonized System Code. It is a globally standardized system for classifying goods that are traded internationally. This system is managed by the World Customs Organization (WDO) and is used by customs authorities around the world to identify and classify products.
An HS code consists of 6-10 digits. Every 2 digits represents a category of goods. This allows customs to accurately categorize a product.
Why is an HS Code important?
- Prevent delays: Customs authorities use HS codes to determine what taxes, duties, and other trade restrictions apply to a product. Without the correct HS code, your shipment may be delayed or even declined.
- Costing: The HS code helps calculate import duties and other taxes. If you use the wrong code, you could pay too much or, worse, get into trouble with customs. Watch here our free tool that helps you determine import duties, VAT & other customs costs.
- Trade statistics: Governments and international organizations use HS codes to maintain trade statistics. This helps with understanding trading patterns and making economic decisions.
How do you find the right HS Code?
Finding the right HS code can sometimes be a challenge, but here are a few steps to help you:
- Use online tools: We have a free HS code tool created, which allows you to find the correct HS code for your product within 10 seconds.
- Ask your logistics service provider: Many logistics service providers employ experts who are familiar with HS codes. They can help you determine the correct code for your products.
- Review previous documents: If you have previously imported or exported similar products, you can check the HS codes on old invoices or customs documents. This can be a useful reference.
Calculate customs fees
With the correct HS code, the value of the goods and the countries of shipment and arrival, you can calculate the customs fees free of charge within 10 seconds with our customs duties tool!
Conclusion
HS codes are essential for international trade. They ensure streamlined and efficient customs processing, help calculate taxes and duties accurately, and contribute to reliable trade statistics.
By using the correct HS code, you can avoid problems with customs and ensure that your goods arrive quickly and without problems at their destination.
What can you do if you can't find the right HS code?
Do you have any questions or need help finding the right HS code? Please contact our customer service via the chat or by calling +31 85 130 42 12 . You can also send an email to forwarding@cargomate.nl.
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