What is harmonized system?
- A way to identify any product with a 6 digit code
- First 2 digits identify the chapter the product falls into
- The next 2 digits identify a heading with that chapter
- The last 2 digits denote a sub-heading making it more specific
- There is an example on the right
Coffee
HS Code: 090111
- Chapter：Coffee, Tea, mate & Spices
- Subheading：Coffee, not roasted,not decaffeinated
- Heading：Whether or not roasted or decaffeinated, coffee husks and skin, coffee substitutes containing coffee in any proportion
Correct HS code ensures
- You pay the right duty
- You receive the benefits you are eligible for, such as a suspension of customs duty
- You are informed of whether your product attracts anti-dumping duty, requires a special licence to be shipped or comes under a trade quota
Incorrect use may cause
- Steep fines and penalties imposed by customs authorities
- Denial of import-export privileges
- Denial of refund or a lengthy process to claim a refund if you have paid a higher rate of duty
- Payment of duty difference plus interest if you have underpaid
