The Harmonized System of Customs Tariff (HS Code)

It is very important for the import-export process because it is a code used to classify products to facilitate customs duty calculation, import-export control and compilation of trade statistics.

Roles of HS Code to concerned parties.

Entrepreneur, The Pricing, Use the HS Code to calculate the actual cost of the goods, including customs duties, to determine the appropriate selling price and also relate to the legal of those products e.g. FDA, Harzardous Goods, or military and defense concern.

Government Customs documents: The HS Code must be correctly specified in customs documents to ensure smooth customs clearance.

Logistics planning: Helps in planning transportation routes and selecting appropriate transportation channels.

Tax benefits: The HS Code considerate various tax benefits such as FTA.

Government agencies: Customs Department: Responsible for setting and maintaining the HS Code, controlling import and export, collecting customs duties and compiling trade statistics.

Other agencies: Such as the Ministry of Commerce, Ministry of Industry, use the HS Code to set trade policies, promote trade and control certain types of products.

Logistics service providers: Assist in preparing customs documents, conducting customs formalities and shipping goods.

Shipping companies: Responsible for international transportation of goods. And HS Code information is required to carry out customs procedures.

Testing and certification, verification service providers: Provide testing and certification services for goods to comply with specified standards.

Importance of HS Code in the import-export process

  1. Customs duty calculation: HS Code is the basis for calculating the customs duty rate to be paid.
  2. Import and export control: Control prohibited or restricted goods.
  3. Trade Statistics collection: HS Code information will be used to analyze trade trends volume and plan business strategies.
  4. Tax benefits request: HS Code is used to consider various tax benefits such as FTA.

Understanding the roles of each party and the importance of HS Code will help entrepreneurs to conduct international business more smoothly and efficiently.