WCO 2022 - World Customs Organization Product of Led - CIC

The World Customs Organization (WCO) designed, developed, and maintains the categorisation system known as the Harmonized System (HS) code. Every commodity is given an HS code, which is used by customs agencies around the world to identify products when determining duties and taxes as well as for compiling statistics. The HS code assigned to it is internationally recognised in every country.

The World Trade Organization (WTO) established the six-digit Harmonized System Code (HS Code) to standardise product classification. Countries are free to establish national distinctions for tariffs and many other purposes above the six-digit level.

The Harmonized (Commodity Description and Coding) System, also known as the HS code, is a classification scheme that assigns each piece of merchandise an own number made up of a series of six digits. The commodity is then classified by customs using this special number.

Basically, the HS code:

• Unique six-digit identification code

• Organised into 21 sections and 99 chapters

• More than 5,000 commodity groupings in total

• Structured according to strict legal and logical parameters

• Defined by rules that support consistent, and uniform global classification.

The structure of the HS code is as follows:

The first two digits represent the Chapter.

The second two digits represent the Heading.

The last two digits represent the Subheading.

The following four digits (Heading and Subheading) correspond more specifically to the type of product it is, while the first two digits (Chapter) indicate the category (Chapter) that the product belongs to. This number is used by customs offices all over the world to determine what is in your shipment.

Lets look at the HS Code of an Apple, 080810. The HS coding language translates it as follows according to the following logic:

• Chapter: Edible fruit and nuts; peel of citrus fruit or melons (08) - this represents the broader Category into which the product is assigned.

• Heading: Apples, pears, and quinces, fresh (08) - this is the subcategory of the product and provides more details about the product.

• Subheading: Apples (10) - This is the exact product.

• HS Code: 080810

Customs officials would have to spend a lot of time reading product descriptions and categorising them if there were no HS codes. Applying tariffs, taxes, licensing, or restrictions will be challenging in light of this. Importers and exporters from all around the world would be able to identify their items precisely with the help of HS codes. This will guarantee that the proper tariffs, taxes, licences, and limits are adjusted to ensure smooth processing of the shipment.

This depends on the country’s nomenclature. A few examples are cited below:

Singapore has eight digits, Thailand has eleven, Indonesia has eight, Australia has ten, the Philippines has nine, Vietnam has eight, India has eight, and China has thirteen.

HS (Harmonized System) Codes are used globally to categorise products. In other nations, the HS Code is referred to by different names. For instance, the Harmonized System of Nomenclature (HSN) Code in India, the Nomenclatura Comum do Mercosul (NCM) Code in Brazil, the Buku Tarif Kepabeanan Indonesia (BTKI) Code in Indonesia, and the Harmonized Tariff Schedule (HTS Code) in the United States.