HTS Codes 101: What You Should Know About it
Items that are traded internationally are defined and characterized by the World Customs Organization, through the HTS Code or the Harmonized Tariff System. 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. 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.
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. What makes HTS Codes an effective system, is the fact that the 7-10 digits composing it stands for something in every country. For each country the 6 digits always has the responsibility of describing what the item is all about, while the last digits are something unique in each country.
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. Of course, there are also other companies out there whose sole purpose is to help you with providing HTS Codes to your items and truthfully, they are becoming more and more popular nowadays but, many still opts to do the job themselves as this provides them with more ease in terms of preciseness as they know that they are the ones who are still the most knowledgeable about the items they’re trading. Experts however are more knowledgeable on the HTS codes in its entirety and if you want to take chances and opt for them, you just need to make sure that you provide accurate description of the items to them.
Aside from classification of the goods or items, there’s a meaning behind why HTS Code is referred to as a Tariff system, and that’s because the codes are also a way to assign the costs to be paid for each item that’s imported and exported. 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.