• admindesk@icoyacaafrica.org
Service Photo

Harmonised System Codes or HS CODES

The Harmonised Commodity Description and Coding System generally referred to as "Harmonised System" or simply "HS" is a standardised numerical system developed by the World Customs Organization (WCO) to classify traded products in global trade. It is a unique 6-digit numerical identifier assigned to a specific product for import & export purposes. HS codes act as a common language for customs authority allowing consistency & efficient data collection. They form the basis upon which all modern customs management systems operate.  Incorrect HS classification can result in hefty fines, penalties, and even the potential seizure of goods

HS Code Anatomy

The Harmonised System (HS) code is structured into three divisions:

(See picture above)

1. Chapter: The first two digits represent the broad categorization of goods.

2. Headings: The third and fourth digits provide more detailed information, specifying a category within the chapter.

3. Subheadings: The final two digits add further detail to the product description, representing a subcategory under a heading

Note: Countries typically add additional subdivisions at the national or regional level to suit their own tariffs & statistical needs.

Why are they important?

  • HS Codes facilitate the tracking, monitoring, and updating of international trade statistics, enabling accurate analysis and informed decision-making. 
  • They enable exporters & importers to benefit from Trade agreements by determining what products are eligible for reduced or Zero duties.
  • HS Codes facilitate the analysis of global market trends.
  • They facilitate the monitoring of controlled goods such as narcotics & chemical weapons.

Common HS Code mistakes

  • Misclassifying products solely based on function
  • using outdated/incorrect codes
  • Failing to consider product multi-function

Tips For SMEs

  • Double-check product details before assigning codes.
  • Research product features such as use, function, material, composition
  • Consult experts for complex classification
  • Use official HS references( WCO, National Customs Authority Portal.

 

Article Published by Nangoma Choongo, ICOYACA Zambia Secretary, Zambia

JUSTIFICATION OF ICOYACA TO YOUTH IN RELATION TO AfCFTA /SMES

Quick Contact

Do you want to get more information about us?

Read More

Recent Post

Project

Project Photo
Project Photo

Address

Estate MIA Drive Waterfall
City Johannesburg, Gauteng, 2090 South Africa

admindesk@icoyacaafrica.org

Copyright © 2024, ICOYACA. All Rights Reserved.