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    Why is HS CODE Important in International Shipping?

    JUL 01, 2025

    When it comes to importing and exporting goods, it is essential to comply with the regulations and customs procedures of each country. One of the key aspects that need to be understood globally is the classification of goods. Since different countries might have various names for products, there is a need to create a standard classification system to avoid mistakes during the shipping process. This has led to the creation of a system to categorize goods using numerical codes, known as HS CODE or Harmonized System Codes. In this article, CPLINTER explains the importance and benefits of HS CODE in international shipping.

    What is HS CODE?

    HS Code (Harmonized System) is a system for classifying and identifying the types of goods, which is recognized and implemented by the World Customs Organization (WCO). It is a collaborative effort involving over 176 member countries and serves as the global standard for international trade. The system consists of 11 digits, where the first six digits are set by the WCO and are accepted by the World Trade Organization (WTO) as the international trade standard. The next two digits represent the ASEAN Harmonized Code (CEPT Code), and the last three digits represent a statistical code set by each country.

    For example, the HS Code 1904.10.9000 breaks down as follows:
    1. 1904: Heading No. -The first two digits represent the classification of the "section." -The next two digits represent the classification of the "type."
    2. 10.90: Subheading No. -The first two digits represent the remaining part of the six-digit HS Code. -The last two digits are for subheading classification.
    3. 000: Statistical Code -This three-digit code represents the product and unit of measurement code as defined by each country.

    Importance of HS CODE

    Standard Classification: It provides a standard classification system for goods, ensuring consistency worldwide. Trade Statistics: It is used for compiling international trade statistics. Customs Duties and Taxes: HS Code forms the basis for determining customs duties and taxes and can help in taking advantage of tax reduction benefits, such as preferential treatment under various trade agreements. Import/Export Control: It helps regulate and control the volume of imports and exports. Rules of Origin: It helps in determining the origin of products for trade purposes. Freight Rates: It is used to determine shipping costs in international trade. Facilitate Trade Efficiency: It enhances the efficiency of trade by simplifying the customs process and ensuring smoother international transactions.

    How to Find the HS Code

    You can find the HS Code for goods in several ways:

    1. Visit the Customs Department website for HS Code search.
    2. Use the Customs Department's Mobile Application (HS Check).
    3. Consult with a licensed customs broker to help identify the HS Code for your goods.

    Having an international HS Code is highly beneficial because it ensures a clear understanding of goods classification in the import-export process. It also allows businesses to take advantage of tax reductions for imports. If you're interested in international shipping services, CPLINTER offers comprehensive logistics solutions. We assist with air, sea, and land freight services, product packaging, export document preparation, and customs procedures. For inquiries, please contact CPL at 02-519-4426 or 091-519-4426. You can also reach us on Line @cplinter or visit www.cplinter.com for more information.

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