Import Export HS Code: How It Helps Global Traders

Happily Trade July 15, 2021

To import and export globally, you should know the Harmonized System or HS Code of your product. It’s an internationally accepted product classification system.

Universally, an HS code contains six-digit which can be broken down into three parts as follows:

• Chapter: The first two-digit tell the chapter in which the goods are classified.
• Heading: The next two digits identify the heading within a chapter.
• Sub-heading: The last two-digit identifies the sub-heading in a more specific way.

Now, after the 6 six digits, countries add more numbers for their purposes. For example, the

US uses a 10-digit Schedule B classification system based on the Harmonized System.

Here are the benefits of knowing HS codes for export or import.

1. Know the administrative policies on shipment

To know the administrative rules like restrictions governing the cross-border movement of goods, you should know this 10-digit Schedule B code from the HS Classification Code List. HS codes for export also help with U.S. Electronic Export Information (EEI) filing. An EEI is required to ship all items that are ITAR-controlled and some items controlled by the EAR. An EEI is filed through the Census Bureau’s Automated Export System (ACE AESDirect).

2. Know the composition of an item

Sometimes, to make a prudent decision, it’s important to know not just what an item is or what purpose it serves, but also what it is made from. Some products are made up of a variety of raw materials. The first four-digit of the code can help you with that raw material information. The information helps pay the right price for your imported items.

3. Find the best market

Using trade data, you can retrieve a world of information on how to secure supplies and protect payments in overseas markets. Use customs HS code list to quickly identify the right export and import destinations, top exporters, and importers in the region, and deal with tedious customs clearance procedures effortlessly.

4. Find trusted trade partners

Knowledge of the export destinations and exporters helps you to grab business opportunities with the most trusted partner in the industry. Likewise, the knowledge of import sources and importers helps you find the right partner to import goods at the best prices. It gives you a competitive edge. Happily Trade Exim has custom import export data for over 80 countries. You get up-to-date, accurate, and reliable data that makes sense and helps with trade growth.

5. Operate efficiently and stay compliant

Check global shipping manifests, customs duty rates, India and international trade data, export benefit schemes, and legal compliances. The information helps you reduce trading time and adhere to the regulatory norms. Working efficiently and ethically is the secret of success in a connected world where people are impatient and have information at their fingertips to validate your claim. When you are Whether you are exporting or importing, you should know the import export HS code. With the foreign country code, you can know the following:

1. Foreign tariffs and taxes, determine the full landed cost of the export
2. Determine the full landed cost of the export
3. Qualify for free trade agreement preferences if applicable
4. Complete shipping paperwork to ensure a smooth import process in the foreign port of entry

Things to Mind

1. Countries may apply different codes for the same product
2. HS codes may change over the time

A bit of homework not only helps you find the right product, market, and price but also saves time and maximizes your ROI. Get in touch with Happily Trade Exim now if you need access to the real-time HS classification code list.