What is HS code? The importance of correctly identifying HS . codes

HS code is extremely important in calculating import and export tax and determining the price of goods. Correct identification can enjoy many incentives.

HS code (also known as commodity code or HS code) is a series of codes representing goods in commercial activities. Accurate identification of HS codes is extremely necessary, affecting many problems. Therefore, determining the correct HS code of goods is extremely important.

What is HS code?

HS code is “Harmonized Commodity Description and Coding System” (HS). This is an internationally recognized coding system for classifying goods. HS is specified according to the Goods Classification System issued by the World Customs Organization.

HS codes are used for most goods, most of which are tangible goods. However, HS codes are also used for some intangible goods by applying the HS code of their container.

For example, if a movie is stored on a hard drive, the HS code is identified by that hard drive.

Vietnam applies the 8-digit HS code to all kinds of goods. Meanwhile, some countries apply 10-digit or 12-digit HS codes.

HS . code structure

HS codes consist of a sequence of numbers where each number in the sequence indicates a certain information. Specifically:

– Section: There are a total of 22 sections, each with its own legend. The part number is not shown in the HS code.

– Chapter: code indicating which goods belong to which chapter in the section. Chapters are represented by the first two numbers in the code sequence. The chapter gives a general description of the type of goods. A total of 97 international chapters. Chapters 98 and 99 are for countries, each with detailed explanations.

– Group: The next 2 numbers after the chapter code, show the classification of the group of goods.

– Subheading: The next 2 numbers after the group code, show the detailed subgroup after the group of the goods.

– Subheading: The last characters of the code sequence represent the subheading. Subheadings are determined by each country.