When goods or items are traded in the international platform, WCO or World Custom Organization, has created the HTS Code or the Harmonized Tariff System, in order to allow an easier way of knowing what an item or good is just through a single glance. Whether it be a case of importing or exporting goods or items, the one responsible for it, should be able to assign the HTS Code that rightfully fits an item or Goods, based on the country’s HTS Code. As a businessman, there’s no doubt that sooner or later, you’ll find yourself wanting to engage with international trade and if you are planning to expand in this huge platform, you’d definitely be better off knowing more about HTS code through the details in this page.
As mentioned, the HTS Codes are tools used globally or throughout the globe and in fact, it is widely known in 170 to 200 countries or more. As a system, each number in the HTS Code stands for something and it come with 7 to 10 digits. It is important to make sure that you know that the 6 digits in the first part of the HTS Code, refers to the item’s description itself while the latter part or the 4 remaining digits differ from country to country.
It is also important to take note, that giving HTS Classifications to your items is your responsibility, and it is highly crucial for you to be accurate and precise in this stage. There’s also the option however, to allow third party companies to do the job for you and let them assign HTS Codes to your items but, many are against this kind of option since only you, as the importer, would undeniably know what your items exactly are and what category it belongs to. Though many are against them, you can still try out seeking the help of experts in HTS Codes and just make sure that you give them description about your items, with utmost preciseness to ensure topnotch results.
Just based on its name alone, it is easy to understand that aside from merely classifying and describing an item, the HTS codes emphasizes the importance of a Tariff system, which means that the codes also has a role in determining how much you’ll pay for the import or export. There are two scenarios which may happen if you put in the wrong code and that’s either paying too low of an amount or too high for the item you’re trading but, regardless of where you land between the two, you’ll still be subjected to penalty payments which will certainly hurt your bankroll as a business.
You don’t have to be too worried at first though, because you can still fix the problem at hand as long as you move quick in fixing it. You can go back to the start and refund the transaction you’ve done, through filing the Post-Entry Amendment.