Please enable JavaScript.
Coggle requires JavaScript to display documents.
Harmonized System (HS) Code (What (Background (Structure (HS code for…
Harmonized System (HS) Code
What
The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products.
Background
It came into effect in 1988 and has since been developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization based in Brussels, Belgium, with over 200 member countries.
Structure
The HS code consists of 6-digits. The first two digits designate the HS Chapter. The second two digits designate the HS heading. The third two digits designate the HS subheading. HS code 1006.30, for example indicates Chapter 10 (Cereals), Heading 06 (Rice), and Subheading 30 (Semi-milled or wholly milled rice, whether or not polished or glazed).
HS code for Khadi
⦁ The Ministry of Commerce and Industry has allocated a separate Harmonised System (HS) code for Khadi.
⦁ Khadi is India’s signature handspun and handwoven cloth that was made iconic by Mahatma Gandhi during the freedom struggle.
⦁ The move is expected to boost Khadi exports in the coming years. Earlier, Khadi did not have its exclusive HS code.
Usage of HS code
HS code are used by Customs authorities, statistical agencies, and other government regulatory bodies, to monitor and control the import and export of commodities through:
Customs tariffs
Collection of international trade statistics
Rules of origin
Collection of internal taxes
Trade negotiations (e.g., the World Trade Organization schedules of tariff concessions)
Transport tariffs and statistics
Monitoring of controlled goods (e.g., wastes, narcotics, chemical weapons, ozone layer depleting substances, endangered species, wildlife trade)
Areas of Customs controls and procedures, including risk assessment, information technology and compliance.
