| There are millions of trade transactions occurring | | | | HS tariff classification, defined by the Harmonized |
| each year. These transactions are classified under | | | | Commodity Description and Coding System which is |
| approximately 8,000 different products. Every item | | | | the international standard for reporting goods to |
| that is exported is assigned a unique 10-digit | | | | customs and government agencies. Importers and |
| identification code. These identification codes are | | | | exporters must perform a Harmonized code search |
| known as the HS codes. HS code is defined as the | | | | every time they need to define and classify a |
| Harmonized Commodity description and coding | | | | shipment in order to legitimately get it across |
| system. Harmonized code is a code which is used to | | | | customs. HS tariff classification system applies to |
| classify the traded products which is being | | | | every commodity that enters or crosses an |
| transferred from one country to another. More than | | | | international country. All of these commodities have |
| 200 countries, customs and economic unions, | | | | to be declared to customs with a specific HS code. |
| representing more than 98% of world trade, use the | | | | The codes consist of 6 universal numbers and an |
| HS code as a basis for customs tariff, collection of | | | | additional 2, 4 or 6 digit number based on the needs |
| international trade statistics, rules of origin, collection | | | | of the individual country. Each number can be used to |
| of internal taxes, trade negotiations,(i.e. tariff | | | | calculate and assess duties and taxes, determine |
| concession), transport tariffs and statistics and | | | | import and export appropriateness, conduct risk |
| monitoring of controlled goods(e.g. wastes, narcotics, | | | | assessment and targeting and many other |
| chemical weapons etc.).Harmonized code list is a | | | | informative purposes. |
| collection of such codes classified under several | | | | HS code is basically, a new language of trade which |
| sections including animal products, mineral products, | | | | signifies the contents of trade in brief. In today's |
| vegetable products, vehicles, aircrafts, ammunition | | | | point of time, these codes have become essential |
| etc. HS code is a type of number which is assigned | | | | part of trade for all exporters and importers. These |
| to a product according to the description of the | | | | codes determine the import-export consistency, rate |
| product (i.e. serial number assigned to a product). | | | | of duty and other important things related to the |
| Afterwards product is known by its HS code which | | | | product. At present, where a wide range of products |
| consists of all the information of product like | | | | are being used in the market, the executions of |
| importers name, product description, city, post of | | | | these code lists have become most important. For |
| destination, and country of origin, Value of product, | | | | example, concentrated frozen apple juice is assigned |
| quantity, unit and unit rate. | | | | a 10-digit identifier. This number is an aggregate of a |
| Harmonized code list are the collections of captions | | | | series of codes starting with a broad category |
| which comprises of classification of HS codes of | | | | assigned a 2-digit identifier described as Preparations |
| variety of products. These codes are generally of 6 | | | | of Vegetables, Fruit, and Nuts etc. It is then assigned |
| digits but may vary from country to country and | | | | a 4-digit identifier described as fruit juices and |
| may even have 10-12 digits. These codes and lists | | | | vegetable juices, etc. The 6-digit identifier is described |
| play a lead role in import and export data of most of | | | | as apple juice. The identifiers are known as HS code. |
| the countries. | | | | |