Tuesday, 5 April 2016

The Function of HS Code in Import Export Operations

The full form of HS code is Harmonized System code which is created by World Customs Organization (WCO) for import-export operations. It is also known as Harmonized Tariff Code. The eight digit ITC-HS code is already implemented by more than 200 countries along with Indian Custom to satisfy the national trade requirements. So if you are a newbie in this industry and want to venture into foreign trade you have to have a clear idea about HS code list. To understand HS code list, at first you have to accomplish with a brief idea about ITC-HS Code Schedule. There are mainly two types of Schedules which were implemented to categories 5000 commodity groups. Schedule l depicts guidelines about export policies and Schedule ll is all about rules and regulations about export policies. There are total 21 sections and 98 chapters in Schedule l under which the list of HS Code is mentioned. Schedule ll has 97 chapters.


Only Director General of Foreign Trade (DGFT) can change or add anything in ITC-HS code for perfection. Things can be implemented by DGFT are - 
  • New code addition in ITC-HS Code
  • Description of commodity
  • Major change in the description of product etc.
Understand the categorization of HS Code digit to take your business to the next level:
Sometimes people get confused about HS code digit that how many digits should be there in a HS code. The answer is a HS Code can be four digit, six digit, eight digit or 10 digit code. Six digit HS code are same for all countries however different countries can implement or add additional digit without modifying the first six digits to explain goods in a detailed level. So without any hesitation you can take the help of Seair to get expert opinion to know more about HS code list.

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