HS Classification Code for Products Import Export

Millions of shipments are exported around the world, and each one is to go through a thorough inspection, registration, and taxation by customs officials. Each of the products has different names that differ in every country. To have proper clarity of the product name that is being shipped, HS Classification codes are used. The Harmonized System (HS) code is a global terminology that aids customs officials in various countries in identifying the same commodity. It is a six-digit code framework that groups and categorizes different goods and merchandise that are being exported. Some countries identify it with eight digits as well.

HS code export data provides every detail that comes under any code in the export area. Indian custom shipment data of export of a certain HS code helps to get information and find the products that are categorized under that specific code and provides details on exporting price, list of exporters, details of the shipment, and many more. Through these, the traders can easily analyze the market trends, demands for products, prices of products, quantity of product, unit of product, country to which it is being sent, etc., and can find new consumers.

Approximately 5,300 HS codes are in circulation that helps to identify the export goods that are further divided into headings and subheadings. These codes are arranged into different chapters and grouped into 21 sections. The processes through which these codes are broken into different parts in the following form:

· A rough indication can be gained about the product from the first two digits — this refers to the chapters present in the list (HS — 2).

· Following two digits present in the code — refer to a product category (HS — 4).

· The last two digits of the code indicate the products are being shipped to another country (HS — 6).

The export import data scheme was introduced to allow for the standardized classification of products all over the world. This Harmonized System of Nomenclature came into effect from the year 1988 after it was developed by World Customs Organization (WCO). The uniform classification that this system provides facilitates the process of international trade. Currently, 95 percent of the world’s trading system is governed by the WCO, which uses the updated version of HSN codes. 233 amendments have been made in these codes for both import and export of goods. In India, this code was adopted to make the GST process standardized and get acceptance in the worldwide sphere.