A material or part, finished good in its movement from an Original Equipment manufacturer or a supplier, a vendor until it reaches its consignee/importer is identified in international trade with a number, “HS Number”, by Customs authorities. Such HS numbers are classified by SMEs/classification experts and are used in customs declaration by importers/Customs brokers/shippers.
Pre-requisites for HS Classification:
a. General Rules of Interpretation (governing principles – SIX rules)
b. WCO explanatory notes – Technical descriptions of goods, practical guidance for classification and identification (refer below for aspects on how
c. Advanced rulings / Rulings of importing country
d. Section & Chapter notes of importing country
Important to know for a HS Classification: (A HS number while being classified by specialists for appropriateness or suitability is generally conducted based on below aspects)
1. Material composition
4. No explicit description
What does a Country published HS Schedule comprise of:
a. Six-digit HS Code (beyond six digits is final HS code used by a Country for tax and compliance purposes and it varies country by country)
b. Detailed description based on Section and its relevant chapter
c. Unit of measurement
d. Rates of duty imposed (General and Specific to Trade agreement and related conventions)
e. Additionally, in few countries scope and applicability under specific circumstances are mentioned on each page of HS schedule
All said and done, Classification of a part is the key starting point of Global Trade compliance, while importation. A Business that runs on high volume sourcing of goods from multiple countries, Logistics operators and Customs brokers must possess a Global classification tool to be more productive in Customs compliance. What is the answer which solves all your questions for trade compliance and arrive at a most appropriate HS classification?
Global HS classification and management tool from GTKonnect, “Global Parts” is a proven application for such classification specialists for searching, managing parts and/or components for multiple countries with actively updated HS content, value based features like auto exchange feeds of Master data or load excel formats, export data to other tools, brokers and partners, Integration with Enterprise applications SAP, Oracle, Dynamics, Dashboards/reports, Manage catalog (For SKUs, add categories and attributes), workflow(s), Customs connectivity to query and all other compliance related.