The Harmonized System of Nomenclature (HSN) is an internationally standardized system of names and numbers for classifying traded products. It is used by customs authorities around the world to identify products for tariff purposes, and is also a key element in global supply chains. Every product that is traded internationally has an HSN code, which provides a unique identifier for that product. In this blog post, we’ll take a closer look at what HSN codes are, how they are used, and what benefits they provide. Stay tuned!
HSN is an internationally standardized system of names and numbers for classifying traded products
Since its establishment in 1974, the Harmonized System of Nomenclature (HSN) has dominated global trade as the unified international standard for classifying products. Representatives from over 200 countries, including members of the World Customs Organization, implement HSN within their respective regions. The premise of HSN is simple—products are identified by 8-digit numbers based on their common use, form, or material. With consistent nomenclature used worldwide, achieving clearer visibility and faster clearance across borders is much more efficient. Additionally, the unique number assigned to each product helps to identify non-compliant items and institutions that violate import/export regulations. The long-established and reliable nature of HSN makes it a trusted source for helping to establish a safe and orderly flow of commodities into global markets.
It is used by customs authorities around the world to identify products when they are imported or exported
Customs authorities around the world are heavily reliant on a product known as the Harmonized System (HS) to identify goods as they enter or exit countries. The HS is an international classification of goods and is an essential tool that simplifies the customs process since it offers a wide range of applicable products and categories that can be assigned by custom agents when dealing with exports and imports. The HS helps streamline communication between trading partners, making cross-border trade more efficient and effective. While it can be somewhat of a challenge to keep up with the regular changes in its product nomenclature, this simple but effective coding system has proved its worth numerous times, increasing global trade while helping customs agents to avoid confusion regarding shipped items.
The system is maintained by the World Customs Organization (WCO)
The World Customs Organization (WCO) is responsible for the maintenance of a global system which offers secure and efficient international trade. The system, known as the WCO Data Model, provides the technical foundation upon which governments, businesses and customs organizations can build their IT systems for managing specific requirements in different countries. The WCO Data Model sets internationally accepted standards for addressing how information on customs declarations are presented and stored electronically. It serves to ensure quality data exchange between different parties across borders, enabling more effective communication between importers and exporters, customs administrations and other regulatory bodies.
HSN codes are made up of six digits, with the first two digits identifying the product’s chapter, the next two digits identifying the product’s heading, and the last two digits identifying the product’s subheading
HSN codes are used to accurately categorize goods and services for customs and taxes. As a unique identifier, these codes allow businesses to easily identify commodities in order to clearly describe them when trading. An HSN code is made up of six digits, with the first two digits portraying an item’s chapter, the next two its heading, and the last two its subheading. This allows an item to be placed into its specific category based on several features such as composition, manufacturing processes or use. In this way, HSNs provide consistent classification standards that make it easier to understand and track a multitude of items around the globe.
Products can be further classified within each subheading by using additional four-digit codes
The power of four-digit codes cannot be overstated when it comes to classifying products. These codes provide an effective tool for organizing products in a meaningful and useful manner, allowing buyers to easily view the types of items available and compare them quickly. Each code provides further classification within each product subheading, making it easier to find exactly what is needed. Whether one is searching for specific clothing sizes or specific automotive parts, the use of four-digit codes makes finding the right product simple and efficient. With such organization, purchasing the right item has never been easier.
For example, HS code 8421 21 00 refers to centrifugal machines for washing clothes
HS codes, or Harmonized System Codes, are used to identify and classify different goods for international trade. One such code is 8421 21 00, which pertains to centrifugal machines for washing clothes. These machines use the force of centrifugal motion to provide an effective and efficient process for cleaning garments. They have become a popular option over traditional scrubbing methods as they have improved in their cycles and treatments to handle more than just the basics, while also offering greater efficiency and sustainability. Additionally, these machines are designed with user safety in mind, incorporating safety switches that instantly shut off power when open or due to excessive shaking. With all these advantages over manual washing methods, it’s no wonder why centrifugal machines have become so valued as a tool for cleaning clothes.
The HSN code system is an internationally standardized system of names and numbers for classifying traded products. It is used by customs authorities around the world to identify products when they are imported or exported. The system is maintained by the World Customs Organization (WCO). HSN codes are made up of six digits, with the first two digits identifying the product’s chapter, the next two digits identifying the product’s heading, and the last two digits identifying the product’s subheading. Products can be further classified within each subheading by using additional four-digit codes. For example, HS code 8421 21 00 refers to centrifugal machines for washing clothes.