Why Every HS Code Search Counts
The Harmonized code is a fundamental component of global trade.? It is a universal standard used to illustrate products being imported and exported around the world.? Each good or material that crosses an international border at customs must have its own HS tariff classification number, consisting of a universal six-digit number that cannot be changed, and additional numbers added by each country to create an eight to 12 digit number.? With officials in more than 180 countries around the world performing an HS code search for every imported or exported item, it is quite an important coding system indeed.
This international HS tariff classification number system is the basis that all modern customs management systems operate on, so it is not something that can simply be ignored if you work in the trade industry whether for a corporation or a government.? It is known as a harmonized code because the first six digits of the code remain the same throughout the international system, so there is a sense of harmony throughout the nations that use the codes.? Member countries of the World Customs Organization, or WCO, are not allowed to change these digits, although they can add to them based on their own needs to create eight, 10 or 12 digit numbers.
If you’re using a code that you looked up for a specific item a few years ago, it might be necessary to do a new HS code search because the codes do change over the years.? The numerical coding system is periodically revised by the World Customs Organization, an independent intergovernmental organization based in Brussels with more than 170 member countries.? This is why many companies and governmental organizations use software tools that allow them to easily look up the thousands of codes that are available, so they can stay on top of revisions without getting bogged down with mindless busywork.
When organizations improperly categorize imports for customs using the Harmonized code, it can result in a loss of profits, penalties and other negative consequences. Considering that and the fact that it is used in more than 98 percent of world trade, it is definitely not something that should be overlooked.