HS Code, ITC Code, Schedule B, are all same?

The information provided here is part of Online Export Import course


Click Here to Know HTS code (HS code) of your product


Export benefit schemes in India

Export procedures and documentation

Export benefit schemes from Export Promotion Councils

 Difference between Schedule B, HS code and ITC code

 

What is HS code?

In this article, I would like to explain about HS code. What is HS code, what is the purpose of HS code, how does HS code work in international trade, how many digits are there in an HS code, how does classification of traded products handles by each country, and the importance of HS code.

HS code means Harmonized System Code to classify traded products all over world accepted by more than 200 countries. Harmonized Commodity Description and Coding System (HS code) is in six digits created and administered by World Customs Organization (WCO) based at Brussels Belgium modified once in five years. Last modification of Harmonized System code was in 2012.

HS Code is a universal trading language for products and is an indispensable instrument for both product coding and international trade. In the Harmonized System, every traded product is classified in accordance with certain logical and systematical framework. Products are registered in customs on the basis of these codes. In short, HS Code is the identification number of all products in customs procedures.

 

Although HS code carries six digits, some of the countries adopt their own classification system by adding two or four digits along with HS code. For example 10 digits are used in EU,USA,CANADA,SOUTH KOREA and CHINA, 12 digits are used in Turkey, 8 digits are used in India/  9 digits are used in Moldova and Japan to suit the national requirements. However, first six digits remain the same. For example, in United States (US), a ten digit code is built to classify traded goods which are called Schedule B. In India, 8 digit code used named as Indian Tariff Code ITC. The member of Word Customs Organization who adopted HS code system is not supposed to alter first six digit codes.

hs code HTS ITC

I have written a separate article about the difference between HS code and ITC code where I have differentiated both.

I would like to bring the attention of traders all over world, if slight changes in determining HS code of your product may vary your rate of duty/taxes in exorbitant. So best attention is required to identify your Harmonized Code. For example, if you want to know the HS code of Onion (vegetables), you will get an HS code of Onion. However, fresh onion and preserved (processed) onions fall under different HS code. So you must find the exact product with its function. The classification of Onion (fresh) and Onion (processed) are different. The rate of import duty also may vary accordingly. I will be displaying HS codes of all products in this website soon with notes which help you to make easily understand and simple. Same product for domestic purpose and commercial purpose carries two classifications with different rate of taxes.

The Harmonized System Codes (HS Codes) have been designed in 21 sections with 96 chapters. Under HS codes, chapter 77 is reserved for future international use, and chapter 98 and Chapter 99 for national use.

In this article I have explained, what is HS code, the purpose of HS code, how does HS code work in international trade, how many digits are there in an HS code, how does classification of traded products handles by each country, and the importance of HS code.

Would you like to add more information about HS code and its functions? Share below your experience in handling Harmonized System Codes?

Comment below your thoughts about HS codes.

 

 

The above information is a part of Export Import Online Tutorial


Posts about export import online training


Click here to know a basic tutorial about HS code (HST code) 

Other Posts

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

  How to find foreign  buyer? , Difference between  HS code and  India Trade classification ITC, Difference between Schedule B, HS code and ITC code,How to settle dispute in Exports and Imports?Import clearance procedures and formalities Bank finance to exporters as pre shipment finance Tips to exporters on Documentation What are the legal documents in exports  Click here to know India Trade Classification (ITC)  What is shipment Advice and what are the contents of shipping advice  Difference between mother vessel and feeder vessel  Difference between FCL and LCL How to settle dispute in Exports and Imports?Import clearance procedures and formalities   Difference between MBL and HBL. How does MBL work and How does HBL?  Click here to know a basic tutorial about HS code (HST code)  Click here to know HS code of other product/commodity How to cover the risk of Cargo loss or damage
Who can inspect import cargo in US

Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 

 



Comments


varun goel: i seen ur website , and really very much impressed by the service u r providing by helping the new one to become the flagship bearers of tomorrow. pls accept my heartiest blessing for the same, mwhile sir i have one query, as iam a resident and having company registered in india and i want to remit my export cargo ocean freight to my freight forwarder who is also having set up in india., we both have accounts in india , now due to recent huge exchange fluctuations, iam suffering a huge loss if i pay my invoice in INR, alternatively my forwarder is ready to accept the ocean freight amount in USD as well. now when i approached my state bank of mysore to allow me to remit the OCEAN FREIGHT amount in USD , they refused by saying that since both the entities are indian based and have indian accounts, hence this type of transaction is not possible, whereas if iam not wrong RBI permits exporters to pay their ocean freight amount in USD.can u pls put some light in this matter as my bank is asking some papers from me to prove this type of transaction.i really request you to kindly provide me your assistance in this regard and if possible pls guide me by providing relevant guidelines if there is any of RBI,we will wait to hear from u soon, and really appreciate your quick reply in this regard., thanking you.

Shailesh Chauhan : I was in interview and came across a question 1) What is CCN Number in respect to shipping was very curious to know the answer googled the question but was not able to find the answer.Please can you HelpFound your website very useful and easy.Please also provide link for various Schemes eg.DGFT.Drawback schemes.

Shashank Rawat.: I hope you are fine there. First of all, let me give you my heartfelt appreciation and thanks for your initiative regarding teaching so many people , not even in India, but worldwide, regarding the intricacies of importing and exporting stuff. You did, what many people wouldn't, i.e. teaching people about a trade, and that too with so much dedication and effort, and all the while without even expecting any kind of 'reward' from them...this selflessness on your part is really appreciated Sir ; and i sincerely hope that there would be more people like you in our country and world too.I stumbled upon your website a couple of months ago, and that created in me a ferocious desire to jump on the bandwagon and start my own little business venture in import/export. I am a 24 year old guy and an electronics and communication engineer infact, and just graduated, but want to create my own business venture, and this business really intrigued me. But I have a few questions regarding this , which I am asking you and would be tremendously grateful if you answered them...it would mean a lot to me, as i don't know anyone else who might settle my queries.I'll post my questions in a point wise manner and would really appreciate if you answered them in the same way too...Considering that there are so many import/export houses in our country, many of which have been in this trade since many decades, and deal in crores...is there any scope for new people like me to make a cut? The main point of contention is me not having a real big starting credit.I would like you to give me a fair and brutal assessment regarding this, whether i should choose this line of work , and whether there is any scope for me to make a considerable dent in it. And I already have a fair idea that it would take a considerable amount of time, effort and risk for me to settle down in this business.You may find this question to be really silly, but i wanted this doubt to be clear in my head. If suppose i want to export some stuff to another country, then can i export it to a point-of-sale place ? Or does that person have to have an import license? What i meant was, can i just export the cargo to a particular address abroad without that person having an importer license? Or is it mandatory to have a license by him/her?Does the Indian government run a list of items which cant be exported to other countries? And do they fix a minimum amount of price for any said stuff to be imported or is it up to the exporters to sell it at any cost?Is there a place, where I can get a list of quotes of items that any importer is seeking from people to be exported to him? Some online forum or something like that?While concluding this insanely long email, I would just like to repeat once more that you are an inspiration to me and many others too, to work selflessly and hard, and I am sure that just like me there are many people who are grateful to you for showing us the path on which to tread towards success.I would be waiting for your invaluable advice on my queries Sir, and would be eternally grateful and indebted to you if my business booms...cause it would be you who inspired me to do so at the first place.

Manoj S Shinde: We want to start export-import trading activities please let us know what are the formalities we have to complete before starting our export-import activities.Also advise if there is any software for export-import documentation.Awaiting for your prompt reply.

Pooja: My name is Pooja, from Cochin, I have been searching for the Procedure of exporting goods from India, I happened to see your website and It gave more valuable information and I'm thanking to you for the same I have got IE code for the company name Sahar Sagar exporters , few months ago in and thinking what is next. asked many people ,but I didn't get any proper information. I got few orders from two countries and i send the sample to them, but I know there are lots of procedures for exporting, and I would like to get the format of few documents like, Authorized declare code , LC , Purchase order, Invoice , GR form AR 4 ... etc..Does it have any special format? if so, please send me the copies of format waiting to hear from you

Pooja: My name is Pooja, from Cochin, I have been searching for the Procedure of exporting goods from India, I happened to see your website and It gave more valuable information and I'm thanking to you for the same I have got IE code for the company name Sahar Sagar exporters , few months ago in and thinking what is next. asked many people ,but I didn't get any proper information. I got few orders from two countries and i send the sample to them, but I know there are lots of procedures for exporting, and I would like to get the format of few documents like, Authorized declare code , LC , Purchase order, Invoice , GR form AR 4 ... etc..Does it have any special format? if so, please send me the copies of format waiting to hear from you

subhrabitan chakraborty : i got lot of valuable information from your site. i am in business of secondery aluminium metal recycling industry. presently as a raw material i am purchasing aluminium scrap from domestic market. now i want to start import and infact i spoke to an exporter from dubai. rate and everything get fixed but payment he is asking for 10% advance and rest on CAD. kindly let me know , does advance is a safe option on basis of sales contract. or elase you give some suggestion in that regard.

L. NARESH: i am a student i have completed my engg ,i was interested in studying trade(export-import) so i joined pg diploma in foreign trade through distance education mode but soon i found it very difficult in understanding basic terms(example fob,bill of lading )etc etc each time i have to google for knowing the defnitions or terms kindly suggest me some basic books giving details about trade,how export takes place ,basicprocedure,and other details also. kindly let me know if any of the govt institutions conduct seminars about export for beginners or students sir i reside in bangalore eagerly waiting for guidance/suggestions

Admin: Hi Varun Goel, This issue about transfer of ocean freight /airfreight to overseas in USD is being faced by most of shipping, freight forwarding and logistics companies in India. Unlike other countries, there are some technical issues facing by banks in India. However, you can enquire with your banker about EEFC (Exchange Earners Foreign Currency account) can be opened to maintain a separate account for this, as some of the banks in India provide such facility for logistics,shipping and freight forwarding companies. Exporters/Importers have such facility allowed by RBI, thereby some arrangements must be for businessmen like you.

Admin: Hi Shashank Rawat, You may read our other posts to have more information on export import.

Admin: Manoj S Shinde, Please read other articles about international business in this web blog. You can get export import documentation software.

Admin: subhrabitan chakraborty, You may read our article about TERMS OF PAYMENT IN INTERNATIONAL BUSINESS which clearly explains all type of payment methods in exports imports

Ashish Ranjan: HS Code is Harmonized System Code, which is also described as Harmonized Tariff Schedule and it is used in import export business to define a product. Most of the countries use HS Code up to 8 digit level. However, few countries like Russia, USA and South Korea use HS Code up to 10 digit level. You can lookup country wise HS Code on our website http://www.exportgenius.in/hs-code

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers