Hs Classification Code List – A Major Tool for Simpler Trade Transactions
Trade is the lifeline of every nation to turn into an economy. But it is not a simple process. Trading involves a wide procedure of verification between both the importing and the exporting countries. Sometimes this may also lead to confusion. To avoid any confusion, an international organization the 'world customs organization' brought HS code in the picture.
The WCO developed the HSN code with the vision of classifying goods all over the world legally and logically. HS Classification contains six-digit uniform codes that classify more than 5,000 products worldwide. This classification is used for easy taxation process in knowing the tax rate applicable to a product in a country.This code is also used to determine the amount of the products traded across the nation’s borders.
India is a member of the world customs organization since 1971. Since then, it was originally using 6-digit HS codes to classify products for customs and excise purposes. Later, customs and central excise department added two more digits to make the codes more precise, resulting in an 8 digit classification code. Though the code is revised many times the latest edition is of 2017 accepted by the economies for the trade transactions.
The list of HS Codes contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings. Later in a more expressive way the structure of HSN code
- Each section of the code is divided into chapters. Each chapter is divided into headings and then into subheadings.
- Section and chapter titles describe broad categories of commodities, while headings and subheadings describe products in detail.
After the major GST reform of 2017 in India, the HS codes become more important. It helps the taxpayers, to know about GST rates against a particular product.
Seair Exim Solutions is an import export data provider company. It offers global trade data of 80+ countries of the world. Apart from list of HS code, you can find custom duty in India, gst rates, HSN code list etc, on our website.
