subject: Harmonized Code List: The New Trend In Trade [print this page] An HS code is the numerical code, which can be used to describe a product which is being shipped from one country to another. It is basically a unique id assigned to a particular commodity or product, which is used by about 200 countries i.e. about 98% of the total trade of the world.Harmonized code list is a collection of such codes classified under several sections including animal products, mineral products, vegetable products, vehicles, aircrafts, ammunition etc. Every business related company has to assign the code number to its products, which appears with any other standard information about the product.
The code list is a collection of headings and subheadings, which could be easily accessed to get any required code. If the code list did not exist then it would had been quite a complex task to search for a particular segment of products. Besides that, the list also simplifies the task of importers and exporters by making available the entire data on a number of categories.
These codes have become an indispensable part of todays world trade as all exporters and importers need to declare it to customs before any kind of trade. It is these codes that determine the import-export admissibility, rate of duty and other important things related to the product. In present days scenario, where a wide range of products is available in the market, the role of code list has become very important.
The harmonized code list is quite closely related to the import and export data of the country. Countless transactions occur every single day, throughout the world involving the 6 digits of the universally accepted harmonized system, which further get extended to 8, 10 or 12 digits, depending on the country and nature of products. The exporters need these lists for market research purposes, for filling up the shippers export declaration, looking up for tariff rates and certificates of origin. While it contributes to the import data as importers could easily make a reference to entire range of products bought and through it they also get an idea about the other kind of similar products available in the market, which could suit their needs better. The other major applications of HS code and code list are collection of internal taxes, data related to transport tariffs, its statistics, monitoring of certain goods such as narcotics, chemical weapons etc.
