HTS Codes 101: What You Should Know About it
In order to provide goods that are traded within the international platform with a brief description that would characterize what they are in a single glimpse, the WCO or the World Customs Organization has assigned to them their corresponding Harmonized Tariff System or HTS Code. 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. 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.
HTS Codes have become a very vital existence in international trading and in fact, over 200 countries across the globe are already using it in varieties of transactions. As a system, each number in the HTS Code stands for something and it come with 7 to 10 digits. 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. Accuracy is extremely important because failing to do so would incur losses and charges to your company, which is why some also prefers doing HTS codes themselves rather than hiring third party companies to do the job for them. If you do opt for the third party expert’s help, what you need to make sure is that you’ll provide the most accurate information about your items to boost their accuracy even more.
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.
Fortunately though, accidentally getting HTS Codes for your items isn’t really a lost cause because if you notice it earlier, you could still do something to fix it. You have the option to file the Post-Entry Amendment, which will allow you to request from the establishment, a refund for the transaction.