Correct understanding and use of customs HS code

Customs HS code is very important for companies and clerks engaged in foreign trade business. The international market is full of products, the vast majority of goods are classified with HS code, then how to correctly understand and use the goods corresponding to HS coding?



HS coding
The customs code is "HS code", which is known as the International Convention for the Coordination of Commodity Names and Codes, or "Coordination System", abbreviated as HS, and is a commodity classification coding system developed by the World Customs Organization in 1983. The overall structure consists of three main parts: Classification rules; class, chapter and sub-notes; bibliographic and sub-code and provisions in order.

In the current international trade, customs declaration, customs management, import and export product inspection and other import and export trade categories all need to use the customs code.

Using customs code
1. The customs rely on the HS code for the import and export goods supervision and statistics, according to the different codes, the product levy value-added tax is also different.
2. Different HS codes of products used for customs declaration will lead to different customs duties, which will lead to less or more customs duties; Less payment is found to be a legal liability for evading customs duties;paying more will make the business itself lose.
3. Similarly, HS code also affects the tax rebate rate of import and export. Product declaration code is different, its refund rate may also be different. According to the customs code, the revenue department determines whether the goods imported or exported are eligible for tax refund and the tax rate. If a class of products has multiple customs codes, it is better to choose the most appropriate customs code, or it is likely to cause a certain loss if the shipment volume is large.
4. HS coding is different, the declaration of customs need to fill in the content elements are also different, because the HS code regulates the reporting elements. If the declaration elements fill in irregular, it may cause the failure of customs declaration and the need for secondary customs clearance, which will cause delivery delays, even will affect the buyer's trust in the enterprise.
5. When using the customs data, we can input the HS code of product declaration to query the corresponding transaction records of products of the category and foreign trade customers. 
6. The commodity inspection authorities are able to inspect the import and export commodities according to the customs code.