Things you Have to Know about HTS Codes
Items that are traded internationally are defined and characterized by the World Customs Organization, through the HTS Code or the Harmonized Tariff System. Each Country where you’ll import to or export to, possesses their own corresponding Harmonized Tariff System or HTS Code and if you want to export or import items to countries, you ought to make sure that you meet the HTS Code which they have. Continue reading below and find out more about HTS Code, especially if you are a businessman who’s planning to go global in the future and engage to trades in the international platform.
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. Having 7 up to 10 digits in its system, HTS Codes comes with specified meaning which makes it an effective way of immediately defining an item. HTS Code is divided into two parts with the first part referring to the first 6 digits of the code, which stands for the description of the item and the second part being unique, depending on what country you’re in.
You should also understand that the responsibility of giving your items with an HTS Classification, falls into your hands and it is important that you’re accurate in doing so. 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.
You also have to bear in mind that aside from being a system made to classify goods and items traded internationally, the HTS Code is also a Tariff System as its name suggests, which means that each code or item corresponds to specific amount of payments. There’s a chance than in the process of providing wrong code to the items, you’ll either be paying too low or too high of an amount but what will really get your bankroll damaged, are the penalties for providing wrong HTS codes.
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. There’s the Post-Entry Amendment which you can file, which would allow you to refund your transaction and start it all over again.