Hypersport Hs
What is a HS code?
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International trade is a common way to transact business, and many domestic companies trade goods and services with other countries. In order for all this commercial activity to run smoothly a common trading system had to be established, and that's why the Harmonized System, or HS, was developed. It has since been adopted by most of the countries worldwide, while also undergoing several changes in product classifications.
The Harmonized System
The Harmonized System (HS), also known as the Harmonized Commodity Description and Coding System, is an international nomenclature for the classification of traded products. The HS came into effect in 1988, and has since been developed and maintained by the World Customs Organization (WCO). The WCO is an independent intergovernmental organized based in Brussels, and has almost 200 member countries.
This system uses names and numbers to classify traded goods. Since it's internationally standardized, it allows participating countries to classify traded products on a common basis for customs purposes. Internationally, the HS for classifying goods is a six-digit code system.
Structure
The HS comprises approximately 5300 product descriptions, that appear as headings and subheadings. The HS is organized logically by component material or economic activity. For example, machinery and mechanical supplies are found in one section, while animals and animal products are found in another. It's arranged into 99 chapters and organized into 21 sections. Section and chapter titles describe broad categories of goods, while headings and subheadings give more product details. Sections and chapters are organized in terms of a product's technological complexity, or in order of its degree of manufacture.
Natural commodities, such as vegetables or live animals, are described in early sections of the HS, while more technical products, like precision instruments and machinery, are described in later sections. Chapters within these individual sections are also generally organized in order of degree or complexity of manufacture.
HS Codes
The HS code is comprised of six digits, of which the first two digits designate the HS chapter. The next two digits designate the HS heading, and the third set of two digits designate the HS subheading. As an example, HS code 1006.30 indicates chapter 10, heading 06 and subheading 30. This is the code for cereals, specifically rice, and indicates that it was "semi-milled or wholly milled, whether or not polished or glazed".
Classification
The process of assigning HS codes is known as HS Classification, and all products can be classified by using the "General Rules for the Interpretation of the Harmonized System". These codes are determined by a variety of factors, including a product's function, form and composition. An example of a product classified according to its form would be whole apples. The classification would change depending on if the apples are fresh or frozen. An example of a product classified by its material composition is a picture frame, which is classified under subheading 4414.00, and falls under the category for "wooden frames for paintings, photographs, mirrors or similar objects".
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