What is HS Code? Complete Guide to Knowing the Harmonization System Code
In the world of international trade, there is a coding system that is very important to facilitate the export and import process of goods, namely HS Code or Harmonized System Code. This article will discuss in full about what HS Code is, how it works,
and its benefits and functions in international trade. If you are a businessman, professional in the field of logistics, or even students who are interested in the world of international trade, this article will give you a deeper understanding of the coding system of this one.
Introduction: Why is HS Code important in global trade?
HS Code is a coding system used to classify goods traded throughout the world. Without this system, the process of import and export of goods will be far more complicated and prone to mistakes,
both in the calculation of customs rates and in fulfilling regulations. This system makes it easier for countries around the world to communicate effectively about the types of goods traded, ensuring that the appropriate tariffs are carried out, as well as maintaining supervision of limited or forbidden goods.
What is HS Code?
HS Code, short for the Harmonized System Code, is a classification system of goods managed by the World Customs Organization (WCO). This system is used by more than 200 countries worldwide to categorize goods in international trade.
HS Code consists of a series of numbers that show categories and subcategories of goods.
The origin of HS Code
This system was first introduced in 1988 by WCO with the aim of facilitating more efficient international trade. HS Code has a standardized structure so that it can be used by almost all countries,
Although some countries add further digits for local adjustments.
How does HS Code work?
Harmonized System Code (HS Code) is an international coding system used to classify goods in global trade. HS Code consists of a series of structured numbers,
Starting from two to six digits, which group goods based on certain categories. To facilitate understanding, let's look at how the HS Code structure is divided:
1. CHAPTER (CHAPTER)
Chapter is the top part of HS Code and is represented by two digits. This chapter classifies goods based on their general characteristics.
2.
Group (heading)
Under each chapter, there are groups identified with four digits of numbers. This group provides a more specific classification of goods in each chapter.
3. Sub -group (subheading)
Each group is then further divided into sub -groups identified with six digit numbers.
This sub-group provides a deeper detail about the items in the group.
4
The tariff post is the most detailed level of HS Code and uses six digits that are more specific for each type of goods. For example, under the sub -group of live chickens,
The tariff post will provide codes for certain types of chicken. This allows the identification of very detailed items,
Example of HS Code:
HS Code for Products:
9403.20 - Tables and chairs from wood for the office.
The right HS Code will facilitate the process of imposing tariffs and customs, and minimizing the classification of goods.
The Importance of HS Code in Import and Export
HS Code plays an important role in international trade, especially in the context of import-exports. Here are some of the reasons why HS Code is very important:
Facilitate customs procedures: HS Code allows customs and state authority to classify goods accurately and efficiently.
This also helps in determining import duty tariffs and reducing delays in the port.
Avoiding errors in shipping goods: With a clear code, the company can avoid mistakes in shipping goods that can cause a fine or return of goods.
Supervision of prohibited or limited goods: HS Code allows the state to identify goods that have restrictions or restrictions, such as dangerous goods or that do not meet safety standards.
The benefits of HS Code for business people
For business people involved in international trade,
HS Code offers various benefits, including:
Facilitate the search for import tariffs and customs procedures: By knowing the right HS Code, business people can easily find customs rates and procedures that apply to their goods. This will speed up the import and export process.
Reducing potential legal problems: wrong choosing HS Code can result in tariff errors or even violations of the law. By understanding and choosing the right HS Code, business people can reduce legal risks.
Efficiency in Logistics and Inventory Management: HS Code is also used in a logistics system to group goods based on its type, thus facilitating the process of managing inventory and distribution of goods.
Check HS Code
To find out the HS code of an item,
You can access several official platforms provided by the Indonesian government. One way is to visit the Indonesian National Single Window (INSW) page at http://eservice.insw.go.id/. After entering the page, select the Indonesian NTR menu in the toolbar and click HS Code Information. On this page,
You can search for HS Code based on keywords in Indonesian. After entering the search word, select HS Code with eight digits, and you can see information related to import duty, VAT, PPH, and restrictions or prohibitions (lartas) that may apply.
Alternatively, you can also visit the intrade.kemendag.go.id portal.
Here, select the service menu and click the HS list. In the HS search column, you can directly enter the HS number if you already know, or choose the description of goods (Indonesian) and enter relevant keywords. After that, click View, and you will find various information related to the HS number that matches your search word,
complete with information about tariffs and other rules.
HS Code is an inseparable part of the international trade system. By understanding how HS Code works, its benefits, and how to find the right code for your product, business people can ensure that the import-export process runs more smoothly and in accordance with regulations.
This system not only helps in determining tariffs, but also maintains the smooth flow of international trade with better supervision.